A.I.M. Users Bulletin Board

[Qarel]

Hi Grabber, the problem with that analysis is that it assumes that the split causes the effect. Couldn't it be that the split is more of a symptom? The majority of the stocks getting split will be doing well, and stocks with reverse splits tend to be doing worse than their average peer. Where's the problem? Or do efficient market proponents claim that all stocks are moving in lockstep? Or that in an efficient market no stock price will ever move? That would take a lot of believing. That the effect is not observed in other periods is hardly surprising, as I would expect variation and external circumstances to play a role too.

Regards,

Karel