摘要： The recent splits of AAPL and TSLA drew a lot of media attention. A common comment was “splits don’t change the stock fundamentals, so they shouldn’t affect valuation.” But that’s not true. Splitting fundamentally changes how stocks trade. That can make it cheaper for investors, improving their returns. In turn, when investor returns increase, stock valuations should outperform.

The recent splits of AAPL and TSLA drew a lot of media attention. A common comment was “splits don’t change the stock fundamentals, so they shouldn’t affect valuation.” But that’s not true. Splitting fundamentally changes how stocks trade. That can make it cheaper for investors, improving their returns. In turn, when investor returns increase, stock valuations should outperform. In fact, seemingly small things like market structure and trading costs are important to the economy.

Quite a lot of academic research shows that stocks that split tend to outperform the market. We updated these studies with newer data. What we found was (still) a compelling case for stock splits.

Overall, large cap stocks that split outperform the market by an average of 5% over the next 12 months. Just announcing a split causes the average stocks to outperform the market by 2.5%, indicating the market expected gains even before tradability improves.

......

詳見全文Full Text： tradersmagazine

若喜歡本文，請關注我們的臉書 Please Like our Facebook Page： Big Data In Finance