mlennyma wrote:Many times a split confuses the illitrate wanjiku to think a share is cheaper hence a price rally.its 50/50 a split might favour them.

I think its a human thing not a wanjiku thing. It also genuinely increases liquidity. For the sake of example, If one share costs $1,000, you may not be able to afford even 1 share if all you have is $500. Split that by 10 and a share now costs $100. Even if you get less of the company by buying 5 shares, you still get to own the part of the comapany you desired. It is this effect that makes the stock rally after the split regardless of any logic you employ.
@Impunity, you may actually make a chunk from your speculation if you follow this logic.