#1
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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
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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
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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
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[ QUOTE ] You're trading in a dime to get two nickels. [/ QUOTE ] Two nickles may be more liquid than your one dime. [/ QUOTE ] Nickles are also more affordable to the average investor. |
#8
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Re: Google Stock
99% of the money in the market is not coming from the average investor.
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#9
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Re: Google Stock
price of stocks doesn't mean much, focus on price to earnings
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#10
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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. |
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