Perception, Illusion and Reality: Stock Splits and Index Inclusions (Exclusions) скачать в хорошем качестве

Perception, Illusion and Reality: Stock Splits and Index Inclusions (Exclusions)

On August 31, 2020, the two biggest news events of the day were the stock splits at Apple (4 for 1) and Tesla and the reconstruction of the Dow 30, with Honeywell, Salesforce and Amgen replacing Exxon, Raytheon and Pfizer. In this session, I start with my value vs price contrast to classify events in terms of their impact: 1, Value events change cash flows, expected growth or risk, and thus value. 2. Pricing events affect liquidity and/or momentum in a stock and thus price 3. Gap events do not change value, but by drawing attention to a company, can cause the gap between price and value, if one exists, to close. It is difficult to argue that stock splits and index inclusions change value, but they can have pricing effects (by changing momentum) and, for lightly followed and under-the-radar companies, a gap effect. With Tesla and Apple, thought, the splits are likely to be a momentum effect. Slides: http://www.stern.nyu.edu/~adamodar/pd... Blog Post: https://aswathdamodaran.blogspot.com/...