Google Stock

JAque · #1 12-16-2006, 12:55 PM

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

gull · #2 12-16-2006, 03:07 PM

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Is a split normally a +EV for the stockholder?

[/ QUOTE ]

No.

JAque · #3 12-16-2006, 04:52 PM

Can you explain why?

thanks

JAque

PokerSparky · #4 12-16-2006, 05:13 PM

[ 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.

jumbojacks · #5 12-17-2006, 01:35 AM

You're trading in a dime to get two nickels.

Evan · #6 12-17-2006, 06:58 AM

[ QUOTE ]
You're trading in a dime to get two nickels.

[/ QUOTE ]
Two nickles may be more liquid than your one dime.

kyleb · #7 12-17-2006, 04:56 PM

[ QUOTE ]
[ 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.

hedgeyerbets · #8 12-17-2006, 05:18 PM

99% of the money in the market is not coming from the average investor.

catalyst · #9 12-17-2006, 07:10 PM

price of stocks doesn't mean much, focus on price to earnings

maxtower · #10 12-17-2006, 08:27 PM

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.