Making Investment Decisions on an Issuer Company's Stock Split: Information and Analysis Model Development

The paper analyzes the process of stock split on the example of Apple and Tesla. The purpose of the study was also to create an information and analytical model for the process. The objectives of the study include analyzing the process, both on the part of the issuer and the part of investors (private and institutional), analysis of the reasons, advantages, and disadvantages, analysis of the provisions and literature on the issues under consideration, a review of all existing technical analysis indicators, followed by a detailed analysis of those used in research, measurement of indicators of return and risk of a stock using Sharpe, Beta, Trainor, and Jensen ratios, as well as offer an information and analytical model of the process with the possibility of choosing an investment strategy. The study used four technical analysis indicators along with risk and return ratios. Stock quotes were considered for seven time periods: one month and two weeks before the split, the day of the split, two weeks, a month, three months after the split, and for the entire period, which was six months. According to the results of the study, the most profitable period for the company's shares was the period between the announcement and the day of the split, despite the fact that after the split the share price decreases several times, and more investors can afford to buy shares of a particular company. Based on the study results, a model for choosing a strategy was proposed, divided into blocks, which can be used to create applications, services, or Telegram bots.