Stock Splits Pay Off—on the Rare Occasions They Occur

Stock splits have all but disappeared from corporate playbooks, even though history shows shares of companies that split their stock often see a bump in price.

Stocks in the S&P 500 tend to rise 5% in the year following share splits, including 2.5% immediately following the announcement, according to research from Nasdaq Inc. on splits between 2012 and 2018.

“Splits…

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