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Google Stock
I have seen stocks in the past where they are split after they reach a certain value.
What drives the decision for a company to split their stock? Is Google a good bet to buy it hopping for a split? Is a split normally a +EV for the stockholder? thank you JAque |
#2
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Re: Google Stock
[ QUOTE ]
Is a split normally a +EV for the stockholder? [/ QUOTE ] No. |
#3
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Re: Google Stock
Can you explain why?
thanks JAque |
#4
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Re: Google Stock
[ QUOTE ]
Can you explain why? thanks JAque [/ QUOTE ] A split doesn't acutally change the value of a stock. It merely lowers the price per share of the stock while increasing the number of shares in the marketplace. A stock will sometimes have a small increase after a split, since many novice investors see the stock as more affordable after a stock split. |
#5
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Re: Google Stock
You're trading in a dime to get two nickels.
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#6
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Re: Google Stock
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You're trading in a dime to get two nickels. [/ QUOTE ] Two nickles may be more liquid than your one dime. |
#7
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Re: Google Stock
price of stocks doesn't mean much, focus on price to earnings
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#8
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Re: Google Stock
There is some argument for splits affecting price because it could be seen as a postive sign from management that they think the price will continue to go up.
There is even a newsletter you can check out which tries to take advantage of this fact. http://www.2-for-1.com You might find it interesting. I don't know how his performance has been. Check it out. |
#9
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Re: Google Stock
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price of stocks doesn't mean much, focus on price to earnings [/ QUOTE ] First, there are lots of things way more important than p/e. Second, this isn't what he was asking. |
#10
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Re: Google Stock
No splits do not add value, and Google has stated the do not intend to split any time soon I believe.
Also, splits don't make much sense to me personally. If you can't afford a share of Google, you should be investing in individual stock. |
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