Stock Price Charts

Why don't I see the price of split stock go down in any charts i'm looking at?

For example" when a stock splits 2:1 I know they double how every many stock you have but the price is split in half right? Then why when looking at the charts there is barely ever a decline at the time of split? Thanks for the help

Public Comments

1. price charts are adjusted for splits
2. It's typically a sign that a company is doing extremely well if it's stock splits. Because of this, people will tend to almost automatically buy any stock when it splits, causing the price to go up.
3. First, if you are looking at some of the charts available in the marketplace including some profession versions...You will find that the adjustment usually does not immediately reflect on the chat. In general, it will take 1 day (or more sometimes depends on how good the service is) for the chart to adjust for a split event. So, try check the chart of a stock on the day when the split is just done. You will be able to see an unadjusted dunny looking chart which shows price decline sharply... But again, this should not last long. But all charts eventually will adjust for the event. If a stock goes for a 2:1 split at $100 today... you will see the stock price on the chart will adjusted to $50 on 7/11/07. All of the stock prices on the chart before today will also be adjusted according to the split ratio which is 2:1. So if yesterday's price of the stock was $96, you should see the price to be adjusted to $48. Remember, split does not mean the stock value has delcine and it should not be shown on the chart as a decline. Hope this helps. Sal
4. The historical prices are back-adjusted to compare with current prices. Example: CMI was acutally at 146.90 when it split on April 10th, 2007. However, the chart shows it at about 73 right before and right after the split. This back-adjusting is done so the chart portrays a stock's real changes in value.