Abstract :
This paper explores the impact of stock split on liquidity and return on the Stock Exchange of Indonesia between 2005-2011. The price increase is too high, it will cause the demand the purchase of these shares has decreased and eventually may cause the stock price becomes fluktuatif again. For avoid this condition, it is done by the company is lower the share price at the price range to attract investors namely through solving buying shares (stock split). Basically research the stock split is often done. However, problems in study is the result of different studies, it would require further research. Overall, the result of this study show that stock split did not influence trading volume activity, but stock split did influence shares of abnormal return.
Keyword : stock split, liquidity, abnormal return.