Stock Splits: Boon Or Bust? by Michael D. Sheimo
ARTICLE SYNOPSIS ...Stock Splits: Boon Or Bust?
by Michael D. Sheimo
Even the most sophisticated market participants are tempted to buy a stock that has been announced to
split two for one. They, of all investors, should know better, because not all stock splits turn out to be
positive events. So how often are they positive for three to six months after? Michael Sheimo, best known
for books such as Dow Theory Redux and Stock Market Rules, explores the question.
Say that XYZ Corp. has just announced a two-for-one stock split to take effect in two months. Is it time
to sell what you hold, buy more or do nothing? ...