[SantiagoQ]

The underlying mechanism is that supply (of stocks) will decrease. The boost in prize is an anticipation of the result.

In poor economic theory, there shouldn't be any change, but if you consider behavioral economics, and regulations that introduct inefficiencies it explains the change in price.

It also communicates to investors (through action) the plan, apetite for risk, and investment opportunities (for the company) moving forward.

[jsnell]

That's not at all how stock splits work. You're probably confusing them with buybacks.