Crocs (NASDAQ: CROX) is up almost $4 today and trading at $80.90. The big question is, why? as there is no new news out about the company. The real reason why Crocs is up today is tomorrow, May 31st, the stock splits two-for-one.

The funny thing about stock splits is nothing, but nothing, changes except the share price, in this case, is cut in half, and the share amount double. The 39.9 million shares outstanding become 79.8 million shares outstanding. Simple, right? Not quite.

It's the psychology of a split that becomes so intriguing. Institutional portfolio managers can now confidently say that the share-volume traded will go up, therefore providing better liquidity. That is also correct. The share count being nearly 80 million also allows for bigger share positions to be established by an institution. If a normal position is let's say 500,000 shares, it's easier to buy that amount now.

On the individual investor side, the psychology also plays an important role. The thing I have heard the most over the years is "ok, good. Now I can buy the stock. It's a $40 stock and not $80." It is still the same set of financials except the share price is cut in half -- doesn't matter. It's a $40 stock -- not $80.

So, tomorrow Crocs will open around $40 and a number of retail stockbrokers will excitedly call their clients who "missed" this one and sell them on the fact that it's a $40 stock, you know, "more affordable".

It's psychology, but it works.... Can you imagine what would happen if Google (NASDAQ: GOOG) did a 10 for 1 split?!!!

Georges Yared is the CIO of Yared Investment Research. For more growth stock ideas please visit the web site