TY - JOUR T1 - Do Individual Investors Prefer a Price Range in the Equity Markets? JF - The Journal of Wealth Management SP - 105 LP - 118 DO - 10.3905/jwm.2021.1.132 VL - 24 IS - 1 AU - Harsimran Sandhu AU - Kousik Guhathakurta AU - Pradip Banerjee Y1 - 2021/04/30 UR - https://pm-research.com/content/24/1/105.abstract N2 - This article focuses on a wealth-constrained individual investor preference for lower price ranges in the Indian secondary equity market, using stock-split data to gauge the effects of lower price ranges on individual ownership. The hypothesis is that individual investors operate within a price range of choice. The overall findings address three specific contributions. First, the impact of various post-split price (PSP) bands on both individual and institutional investors is assessed. Second, a specific PSP range is estimated that triggers a shift in ownership from institutional investors to individual investors. Third, the article shows the firm-specific characteristics for companies that target lower-priced stocks.TOPICS: Fundamental equity analysis, emerging marketsKey Findings▪ The lowest bands of post split price (PSP) have maximum positive impact on ownership of individual shareholders.▪ The shift in ownership from institutional investors to individual investors happens at the lowest bands of post split price (PSP).▪ Companies having lower price-to-book ratios and higher market capitalization target lower market prices (PSP) to attract individual shareholders post split. ER -