Actual and theoretical price adjustment, Business Economics

For any stock splits (if there were any it will look like the screen below) compare the actual and theoretical price adjustment.  For example, on the day that a 2-for-1 split is effective examine the closing price on the day before (e.g., $50) and the next day.  Does the opening share price change as expected (e.g., to $25)?  If there were no stock splits (usually that is the case), your answer is that there were none.

Mar 97

97.00

101.00

87.62

91.69

78,573,200

9.23

Feb 97

102.62

103.50

94.00

97.50

72,398,100

9.82

Jan 97

83.12

103.25

80.75

102.00

75,104,400

10.27

Dec 9, 1996

2: 1 Stock Split

Dec 96

157.50

159.50

76.37

82.62

71,113,800

8.32

 

 

Posted Date: 2/26/2013 1:45:49 AM | Location : United States







Related Discussions:- Actual and theoretical price adjustment, Assignment Help, Ask Question on Actual and theoretical price adjustment, Get Answer, Expert's Help, Actual and theoretical price adjustment Discussions

Write discussion on Actual and theoretical price adjustment
Your posts are moderated
Related Questions
QUESTION (a) What are the causes of inflation in an economy? (b) Discuss the policy implications that the central bank will implement if there is excess liquidity in the mar

What are rural and urban sectors? Rural and urban sectors: • Rural sector consider as countryside. 60 to 70 percent of LDC (Less Developed County) population live into r

Describe the difference between value management and value engineering. Value Engineering: It is concerned all along with determining the cheapest method of accomplishing

Why do countries trade? International trade is the swap of goods and services among countries. Trade enhances consumer choice and complete welfare. Various countries have v

1. (classical monopoly pricing) A monopolist faces a demand curve q (p) = 100   p: (a) If its cost function is C (q) = 2q; what is the optimal level of price and quantity? (b

the basic assumption of the static model

What is the difference between an essential and adequate condition for growth? Essential and adequate conditions are helpful analytical and evaluative elements. As like exampl

Nathan is a successful public relations (PR) consultant, thanks to an outgoing personality and sharp intelligence. At 35, he is near the height of his earnings potential, at around

What is social cohesion? Social cohesion: Social cohesion is regarding how united, cooperative, connected and trustful a society is. This cohesion desires tolerance for c

Problem: (a) Define ‘Business Environment'. (b) Briefly distinguish between internal and external environments of business. (c) Discuss on the key components of the gener