RE:Don't let your emotions get in the wayGreat Explanation Obscure...
Thought I might add a couple of things...
As I mentioned before, most splits trade at a premium to their NAV and a good strategy, if one agrees with my view that splits are for trading as opposed to long term holds, is not to hold a split when the premium is high and buy when the premium is small or better still the split trades at a discount to NAV.
When retail investors get careless and let the premium get too high then the Middlefield's of the world will take advantage of the situation and do a raise at a discount to the closing price. As Obscure points out, this is how they make money through their managment fee that they charge to manage the split. The more shares, the more they make for doing the same amount of work (not bad work as they say...lol)
The other advantage of buying splits with a low premium in addition to less downside risk is that the yield is much higher than when the split trades at a premium. One such split meeting this requirment last Fall was LCS which I traded in and out of for four roundtrips over a couple of months, pocketing 10-20% on each roundtrip. I am currently doing a similar thing with another split.