Apple announced a 2 for 1 split several weeks ago that would take effect today.MacFan782040 said:It's at liek $44 compared to high 80's on friday.
Maybe a 2 for 1 split thing? I don't know much about the stock market haha... but it looks worse now.
No advantage really, it's just a psychological trick. "Ooh $45 is cheap! Let's buy some shares!" and behold as the shares artificially soar.MacFan782040 said:Oh sweet- so wait what are the advantages of having a split stock as compared to not?
And can it ever un-split?
yep, it's just for the convenience...MacFan782040 said:Oh sweet- so wait what are the advantages of having a split stock as compared to not?
And can it ever un-split?
That is truly the funniest thing I've seen all day ....jxyama said:
It's funnier when that's so little a % to even matter to investors.Savage Henry said:That is truly the funniest thing I've seen all day ....
I just love the days range between 90,200 and 90,500 .... Gawd bless'em for extremist trading.
Unless you have my luck. I could have bought Apple at $25 or so a year ago (or at what ever low point they had ) and i could be sitting on stock worth $5 a share. And the iPod would have been a has been in the MP3 market.wdlove said:For Apple $45 is still a good price. With WWDC and Tiger coming, the price is bound to be on the way up again.
While psychology is an important factor, there's also the benefit in increased liquidity for said commodity. $40 a share is easier to afford than $80, so more people can get into the market. Liquidity is [nearly] always a good thing.Raven VII said:No advantage really, it's just a psychological trick. "Ooh $45 is cheap! Let's buy some shares!" and behold as the shares artificially soar.
That only holds true if you're planning on buying one share. And nobody should be buying one share of a stock at that price if they seriously want a return on the investment (broker commission fees would eat into it too much).CorvusCamenarum said:$40 a share is easier to afford than $80, so more people can get into the market.
Hi,DavidLeblond said:uh, my stock is now worth half but I still have the same amount of shares.
Sharebuilder better fix this.
"logic" is in the mind of the investor. In some cases it is the mindset that certain types of stocks should never be above a certain price. Inviting others in to buy the stock at the "lower" value; but hopefully at more than you may have paid for. I know of a few holders of Wash Post stock that have been hoping for a split for some time. For they see the real value of the stock in the $60 to $70 range long term. Not the the $90 to $100 range it is in right now. Some are hoping for a split to be able to double their shares and sell at a $10 premium, others are hoping to see the same share levels as they are now.stubeeef said:Yes it can "un split" there have been some that have done that since 9-11. Usually very beaten down stocks that don't want to be de-listed. Others here can best explain.
A split stock often goes up now that "percieved" cost of entry is less. The effect often belies logic, but is real none the less.
You're both right.therevolution said:In other words, no, affordability is not the issue. It's primarily psychology.
Actually it was more to try and help the small (at the time then) investors. he wanted to limit speculation and volatility in the stockDave00 said:As an extreme example, Berkshire Hathaway has deliberately let the price per share soar in order to deter small-time investors. Pretty hard for the average investor to pony up money in $90,000 increments. In the opposite direction, if you're interested in smaller-money investors, a lower share price allows for easier dollar-cost averaging.