Many public companies have tried to use stock splits in order to create an increased demand for their stock from the average investor who may have been scared away by the current high trading price of one share of stock. The hope for the future is that, following a stock split, the demand will increase and eventually the stock price will rise and outperform the market as a whole. There are various studies and articles out there with different opinions on whether or not a stock split is good for the investor in the long term. Research some articles and at least one example of a company that had a stock split. Comment on:

1. What do the various studies say about the performance of the stock in the long term after a stock split?

2. Lowes company has had a stock split, analyze the stock price before the stock split, after the stock split and the current stock price as of today. Based on the average market increase over the years, what would you say about this companys stock performance after the stock split?

Date	Action	Shares	Shares After Split	Closing Price Before Split
Oct 1961	Bought 100 Shares	100	-	-
April 1966	100% stock dividend (2 for 1)	100	200	41.50
Nov 1969	Stock Split (2 for 1)	200	400	69.50
Nov 1971	50% Dividend (3 for 2)	400	600	71.25
July 1972	33 1/3% Dividend (4 for 3)	600	800	82.00
June 1976	50% Dividend (3 for 2)	800	1,200	40.50
Nov 1981	Stock Spilt (3 for 2)	1,200	1,800	19.88
April 1983	Stock Split (5 for 3)	1,800	3,000	40.25
June 1992	100% Dividend (2 for 1)	3,000	6,000	39.25
April 1994	Stock Split (2 for 1)	6,000	12,000	64.50
June 1998	Stock Split (2 for 1)	12,000	24,000	83.69
June 2001	Stock Split (2 for 1)	24,000	48,000	72.55
June 2006	Stock Split (2 for 1)	48,000	96,000	60.67

3. Do you think stock splits are good for the investor? Do you think they ultimately result in better performance, worse performance or no difference in performance over the long term?