7/31 Why would stock split affect the stock price? Wouldn't the total
valuation of the company stay the same? Afterall, it is the
percentage gain/loss, not the actual dollar amount, that matters.
\_ Why do I have to eat? I get hungry sometimes, and I eat,
but then my shoes are too big.
\_ why are you a such a moron/freak?
\_ because people are irrational. (don't tell me this is the first bit
of evidence you have noticed). -crebbs
\_ stock split really shouldn't affect price. But at Crebbs says,
people are irrational. Plus, a stock split often means that
the management is very confident in their performance. Plus,
people like to buy in 100 lot shares. The lower the price,
the easier it is to buy 100 lot shares.
\_ trend analysis shows that average stock performance after a
split is actually lower than before. but it's not very
significant either way. You used to have to buy in lots of
100 shares or else pay a lot extra, but that's no longer true.
-tom
\_ some people actually do trading not on the actual split
date, but on the split announcement. Some people
buy on the rumour, and sell on the news (the split).
\_ but in answer to the initial query, viewed with
reasonable time scales in mind, splits are noop's.
-tom
\_ yermom is all but noop
\_ whoa... I need to go back to bed... I find
myself agreeing with tom.... Must be a bad
dream... see you in a few hours. zzzzzzz... |
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