MoneyWeek
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Stock splits occur when a company decides to replace (or “split”) existing shares with multiple shares. For example, in a two-for-one split, current shareowners will have their shares replaced with two new ones…
…The evidence suggests that investors can indeed make money by buying shares that have just split. For example, a 2001 study by David L Ikenberry of Jones Graduate School of Management and Sundaresh Ramnath of the McDonough School of Business found that for American stocks between 1988 and 1998, newly split shares made an average return of around 9% in the year after the division.
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