Fund picks and pans stocks

Posts Tagged ‘share price’

How does a stock split show up in the market the following day?

January 10th, 2011

I have been thinking about this question recently, i hope someone can help me clear this up. When a stock "splits" i.e. its share price halves and quantity doubles, how does it appear in the stock market the following day, is the price quoted as half of original value, with a drop of 50% quoted, or is there a different system?

My Related Websites

Mail this post

Technorati Tags: share price, splits, stock market, stock quot

Posted in Online Stock Investment |

Tags: share price, splits, stock market, stock quot |

5 Comments »

Since stock index funds buy the same stocks as the index, won't their prices become artificially inflated?

May 7th, 2010

My understanding of the DOW or S&P500 index funds is that if GE represents say 1% of the S&P500, it will represent 1% of the value of the S&P500 index funds.

Since many people invest in these index funds to represent the market, won’t any company in the index be artificially inflated in price due to heightened demand?

Another way to ask this is: Do companies that join an index experience a bump in share price & do companies that leave experience a drop within a short amount of time?

Thanks!