A study of the effect of stock split announcements Onthestock price of selected indian companies
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Date
2025
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Publisher
NHCE
Abstract
To the interest of economists and practitioners, the relationship between stocks splits and stock prices has
been a subject of continued interest over the years. To financial analysts, portfolio divisions have long
been a puzzling trend.
Typically, they arise when stocks prices are higher and produce a favourable stock price response upon
publishing. Nevertheless, the reaction following the announcement was not fully understood and clarified.
Capital markets play a major role in a country’s development. The market where all relevant information is
available to all investors at the same time and markets respond to available information instantly. Under
such circumstances, the current market price in any financial market could be the best accurate
approximation of the investment value.
In a country’s development, capital markets play an important role. As a general trend, the capital market
output is seen as an economics indicator or forecast. A period of steady increase in commodity values
suggests a period of economic growth while a period of steady decline implies a period of recession.