Stock Price Charts

When a stock splits, why doesnt the price drop on charts?

I've noticed that when many stocks split, their prices don't drop on charts as you'd expect them to. Do the numbers people fudge with the y-axis on the graph so people dont overreact when they see a 50% drop on a chart? If yes, how do they do this? Just curious....

Public Comments

1. they do drop, but it takes some time to reflect it the charts
2. The charts are split adjusted.
3. The price history for the stock is adjusted for the amount of the split. So if it's a 2 for 1 stock split, the price would be adjusted by half not JUST FOR TODAY'S stock price, but for all the prices going back in time. It has no effect on the value of the stock.
4. The purpose of adjusting the graph is not to prevent overreaction. With the adjustment, people can see graphically what happened to the total market value of what they own.
5. The post split prices are split adjusted. Imagine how misleading it would be to look at a chart after a split if you didn't know about the split. You would think the REAL value of the stock had dropped. The chart would worse than worthless in that case it would be misleading.