A stock split should not create value in a perfect market. Logically, it is just a change
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A stock split should not create value in a perfect market. Logically, it is just a change in numeraire. It should make no difference to investors whether they own 1 stock worth $100 or 2 stocks worth $50 each. However, stock splits do seem to signal that the future is brighter, because the stock price usually responds positively to stock split announcements, and may therefore create value in the real world.
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