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Posted on 8/14/20 at 12:18 pm to TigerTatorTots
quote:I don't think it's crazy. Apple wouldn't split if they didn't see an advantage in doing so. Right?
Crazy that splits actually drive demand
It's never a guarantee, but some people would get in at $120 as opposed to sitting out at $460.
Posted on 8/14/20 at 12:19 pm to TigerTatorTots
You make 6x as much money baw
Posted on 8/14/20 at 12:19 pm to TigerTatorTots
quote:
It’s amazing how uneducated the general public is about investing. Crazy that splits actually drive demand
It's also possible many seasoned investors know this, and trade accordingly on the news and the actual split. Why else would a company do this? There are a few reasons, but the main one is to make the stock more attractive to retail investors. It's pure psychology at it's finest.
Posted on 8/14/20 at 12:49 pm to TigerTatorTots
quote:
It’s amazing how uneducated the general public is about investing. Crazy that splits actually drive demand
While I agree with the first statement, investing/personal finance should be taught at least in high school, is the second really ‘crazy’?
A spilt lowers the entry cost to someone who couldn’t normally get in at the presplit price. I’ve never heard of opening accessibility to not drive initial demand of anything.
I mean, there is a reason all of these trading platforms are offering ‘slices’ of shares now. And while the slices are the same as the split shares, the uneducated general public doesn’t know the difference.
Posted on 8/14/20 at 1:50 pm to TigerTatorTots
Well if a stock at 400+ splits 4 ways, I can buy it for just over 100 then it will be worth 400 again almost immediately... right?
This post was edited on 8/14/20 at 1:51 pm
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