Publisher Summary This chapter reviews the theory and statistical evidence concerning the
causes and effects of seasoned public offers (SPOs) of common stock, with particular …

The minimum price increment (tick) determines what prices traders use. The tick is a decimal
fraction in some markets and a fraction based on powers of two in other markets. The US …

We develop a model in which the dependence of the brokerage commission rate on share
price provides an incentive for brokers to produce research reports on firms with low share …

In this paper, we study the impact of noise traders' limited attention on financial markets.
Specifically, we exploit episodes of sensational news (exogenous to the market) that distract …

This study investigates empirically why firms split their stock or distribute stock dividends and
why the market reacts favorably to these distributions. The findings suggest that stock splits …

This paper provides evidence that firms signal their private information about future earnings
by their choice of split factor. Split factors are increasing in earnings forecast errors, after …

We observe significant post-split excess returns of 7.93 percent in the first year and 12.15
percent in the first three years for a sample of 1,275 two-for-one stock splits. These excess …

In this paper, a model of market reaction to stock splits is presented and tested. We argue
that the announcement of a split sets off the following chain of events. The market …

We develop a model of stock-split behavior in which the split serves as a costly signal of
managers' private information because stock trading costs depend on stock prices. We …

Minimum price variation rules help explain why stock prices vary substantially across
countries, and other curiosities of share prices. Companies tend to split their stock so that the …