In the recent past, I could see the price of stock increasing when there is a news of stock split.

With the stock split, only the face value of the stock will decrease and you will get multiple shares yielding to previous face value. Isn't it?

I couldn't understand what's there in stock split that causes the stock to get momentum...! Basically why and when the companies plan for stock split?

Is it just to create a psychological impression of a cheap stock or any thing else is there?

How should the investors conceive this news and act upon it?

That's it.

Nothing changes due to a stock split.....the stock only appears "cheap" after a split.

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in stock split, not only the no: of stocks but the price also is split .. so there will be more no: of stocks and hence higher liquidity .. thats the only positive .. saw an article which looked at stock splits and the performance of the stocks for an year after split .. and that those stocks didn't do too well was the conclusion ..