A June 1999 issue of Money magazine includes an article by David Futrelle entitled Stock Splits: How
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A June 1999 issue of Money magazine includes an article by David Futrelle entitled
“Stock Splits: How the Dumb Get Rich.” LO5 Instructions Read the article and answer the following questions.
(a) What is a stock split?
(b) How do anxious traders and investors obtain timely information about stock splits?
(c) What are the statistics relative to market price reactions for stocks of companies that have split their stocks?
(d) Is there a downside to buying the stock of companies that announce stock splits?
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