STOCK SPLITS

In theory, stock splits boost the number of shares and reduce the price/share, leaving shareholders financially no better off. But reality is different. Since record keeping began, stocks that split have, on average, risen 25.4% during the first 12 months after the split versus 11.9% for other stocks. More recently, stocks that split have handily outperformed other stocks during the 1980s, 1990s, 2000s, and 2010-2013. Better management is undoubtedly why.