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Author: TMFJeanie Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 942  
Subject: Re: Buy before or after the split? Date: 6/25/2001 3:28 PM
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Studies have been done on this in the past, and although stocks prices do tend to increase very modestly immediately after a split, factoring in transaction costs basically wipes out any gain.


...and sometimes stock prices take a dip after a split. The theory being that many shareholders take advantage of the split to rebalance their holdings and may sell off those extra shares.

Either way, it makes very little difference when you buy or whether you own 100 shares or 50. The important thing is to set the dollar amount you wish to invest in a company and buy however many shares that will get you.


Jeanie

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