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Trading Reference Links
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Go to Metastock/Downloader help and you'll see:
"When a stock splits, the historical prices must be adjusted to reflect the
split. For example, if XYZ company has a 2 for 1 stock split, shareholders
will receive two shares for each share that they own. To keep the total
market value of the stock equal, the price per share is reduced by one-half.
Therefore shareholders will have twice as many shares at half the price.
Stock splits are usually done in order to increase the liquidity of the
stock.
When price data is adjusted for a stock split, the volume is also affected.
For example, in a 2 for 1 split where prices are cut in half, the volume is
doubled so that the market value remains unchanged.
[]s jc
>From: me <meta@xxxxxxxxxxxxxxxx>
>Reply-To: metastock@xxxxxxxxxxxxx
>To: metastock@xxxxxxxxxxxxx
>Subject: RE: Newbie question
>Date: Tue, 13 Mar 2001 00:22:57 +0800 (SGT)
>
>Thanx for all the replies.
>
>I've one more qn. not quite related to
>metastock. Here it goes:
>When a stock split, should the
>volume also be doubled or tripled
>based on the split ratio? If we dont
>split the volume but just the
>price, will that seriously affect
>the TA results? I realized that some
>free historical quote data from the web
>doesnt split the volume but just the
>price.
>
>Thanks!
>
>me
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