search query: @indexterm Stock splits / total: 17
reference: 13 / 17
| Author: | Schulz, P. |
| Title: | Stock splits, tick size, and sponsorship |
| Journal: | Journal of Finance
2000 : FEB, VOL. 55:1, p. 429-450 |
| Index terms: | FINANCE STOCK SPLITS SPONSORSHIP |
| Language: | eng |
| Abstract: | A traditional explanation for stock splits is that they increase the number of small shareholders who own the stock. A possible reason for the increase is that the minimum bid-ask spread is wider after a split and brokers have more incentive to promote a stock. The author documents a large number of small buy orders following Nasdaq and NYSE/AMEX splits during 1993 to 1994. He also finds strong evidence that trading costs increase, and weak evidence that costs of market making decline following splits. |
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