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Sammanfattning: Title: One pie or two halves? A quantitative study on how the announcement of a stock split can generate abnormal returns for american Nasdaq firms. Seminar date: 01/06/2023 Course: FEKH89, Corporate Finance Degree Project, Undergraduate level, 15 ECTS Authors: Douglas Freidestam, Erik Petersen, Matilda Åberg Advisor: Maria Gårdängen Key words: Abnormal returns, Signaling Hypothesis, Stock Split, Effective Market Hypothesis, Trading Range Hypothesis Research question: (1) Are abnormal returns generated around the announcement of a stock split for american Nasdaq listed firms? (2) If abnormal returns are generated, which hypothesis can explain the market reactions? Purpose: The purpose with this paper is to examine how the announcement of a stock split can generate abnormal return for American Nasdaq firms. Methodology: This study utilizes a deductive approach to conduct a quantitative study to examine the collected data. Theoretical Perspectives: The study is built on previous research that incorporates Signaling hypothesis, the effective market hypothesis and the trading range hypothesis. Result: The results show that abnormal returns are generated through the announcement of a stock split. Conclusions: This paper concludes that abnormal returns are generated around the announcement of a stock split. and can be supported by the signaling hypothesis and the trading range hypothesis. The study also found results contradicting the effective market hypothesis.