The impact of splitting is confusing to me. In an era where you can buy fractional shares, why does this matter? I get that the stock surged after the news, but why?
Granted, I am a set and forget investor, so I don't pay attention much. [Reply]
Originally Posted by Hammock Parties:
No - what is it, you set a price you'll sell a stock for 3 months in the future or something? Hope some rube comes along?
Originally Posted by Hammock Parties:
No - what is it, you set a price you'll sell a stock for 3 months in the future or something? Hope some rube comes along?
No, you purchase the option to buy a stock in the future at a set price. Much more volatile than straight stock purchases, higher potential profit but more likely to lose money. Interestingly, you need less money to invest which lowers your total risk in the worst case scenario. It seems like something you’d be interested in based on your investment strategy.
Originally Posted by lewdog:
Stock splitting changes nothing financially for the investor. More shares but they are worth the same money before the split.
Only benefit could be for those doing covered calls now have more shares to sell options on.
Lower stock price=sale. People will buy these companies bc they are affordable, especially Tesla, which means the stock price will go up.
Apple did their last stock split in 2014 when it started around $92. It has gone up 5 fold in 6 years.
Originally Posted by RunKC:
Lower stock price=sale. People will buy these companies bc they are affordable, especially Tesla, which means the stock price will go up.
Apple did their last stock split in 2014 when it started around $92. It has gone up 5 fold in 6 years.
That’s amazing
It would have done that without splitting.
See Amazon.
The split does nothing. It’s a great company with a high stock price because it’s got great revenue and a huge cash pile. People can buy partial shares already, so splitting means nothing. If Apple is worth purchasing at $100/shares, it’s also worth purchasing at $500/share. [Reply]
Originally Posted by lewdog:
It would have done that without splitting.
See Amazon.
The split does nothing. It’s a great company with a high stock price because it’s got great revenue and a huge cash pile. People can buy partial shares already, so splitting means nothing. If Apple is worth purchasing at $100/shares, it’s also worth purchasing at $500/share.
I've seen people say this a few times now about buying partial shares. I use TD Ameritrade. Is this something I can do with them? I'm not familiar with buying partial shares. [Reply]