Politics and Economics Discussion

January 27, 2010

Combining Stock Splits With Momentum Investing

Filed under: Uncategorized — Tags: , — articleranks @ 9:55 am

There is a theory that stock splits are a bullish sign in the stock market. The theory says that stocks that split occur because their stock has increased so rapidly that they need to lower their price in order for the average investor to be able to invest into it.

This means that the company should be a pretty strong company and the same momentum that carried them up to that high level before the split will likely push them back up to that level after the split. (more…)

Do Stock Splits Have Any Affect?

Filed under: Uncategorized — Tags: , — articleranks @ 9:25 am

Do stock splits affect the movement of a stock? Most investors believe that stock splits do affect the return a stock will have in the next few years.

It does make sense when you think about it, stocks only split after the price of their stock has been run up so high that it is harder for the average investor to invest into it. (more…)

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