Apple Stock to Split
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Go3iverson
Registered
I've been waiting for this day! I bought ~100 shares at about ~$17 a piece about 19 or so months ago 
Go3iverson said:I've been waiting for this day! I bought ~100 shares at about ~$17 a piece about 19 or so months ago
Lucky guy!
bubbajim
Mac-Junkie
Isn't it just splitting the stock to make available more shares for people to purchase. The actual value of the stocks you have would not change. You can have 1000 shares valued at say um $1000. After the split you'll have 2000 shares, but still be valued at $1000. Correct?? I don't play in stocks so I'm not privy to the terms, but that's what I got from the news article on the subject.
Yes you're right, but after the split, if someone wants to buy 1000 shares it will cost half as much, making it easier for smaller players to buy in.
Natobasso
Tech-Bot 5000
Stock Split defined: What is a stock split? An example is the best way to explain: A company has issued 1 million stocks which are traded on a stock exchange for 500 each. Since the price of the stock is high, this might prevent people from buying and selling the stock, so in an effort to create more flow in the stock, the company decides to do a stock split. With a stock split of 2:1 (read: 2 for 1), for each stock you own, you'll receive one additional stock, so that you now have two. In a split of 5:1 you'll end up with 5 for each you have now. The company does a 5:1 split, and there are now 5 million stocks, valued 100 each. Since there now are more stocks to buy and sell at a lower price, this usually makes the prices go up a little bit also. So therefore splits are seen to be favorable for stock holders. (courtesy of http://www.amateur-invest.com/us_splits.htm).
Basically makes twice as many shares available at half the price. Makes it VERY tempting to buy more shares when the stock price reaches a very high point (all relative, of course.)
Basically makes twice as many shares available at half the price. Makes it VERY tempting to buy more shares when the stock price reaches a very high point (all relative, of course.)
Go3iverson
Registered
With me, I just wanted to keep a constant 100 shares of Apple stock. Apple doesn't pay dividends, so the only way to really 'make money' off the stock is to sell is. This split allows me to keep my 100 shares, get cash for the balance over that and hope it grows again!
TommyWillB
Registered
Huh?Go3iverson said:With me, I just wanted to keep a constant 100 shares of Apple stock. Apple doesn't pay dividends, so the only way to really 'make money' off the stock is to sell is. This split allows me to keep my 100 shares, get cash for the balance over that and hope it grows again!
You should not be counting the "growth" # of shares... That's meaningless...
All you care about is that the $value of your investment grows... The # shares/$1 is an abritrary tangent unrelated to growth.
I think if it like gold... If someone gives you a gold coin worth a certain value... You can melt it down, and form it into two smaller coins, but it will still be the same amount of gold with the same value.
TommyWillB
Registered
How many other companies have 1.8 BILLION shares of stock?
Sounds like a lot to me...
Sounds like a lot to me...
TommyWillB
Registered
Because they know splitting is perceived as a slightly dishonest way of artifically upping the value of the complay... And Google is "honest".djbeta said:
Also, some brands (Mercedes) gain a certain cache by having thier prices be higer than all of the "average" brands. i.e. simple marketing.
TommyWillB said:Because they know splitting is perceived as a slightly dishonest way of artifically upping the value of the complay... And Google is "honest".
Also, some brands (Mercedes) gain a certain cache by having thier prices be higer than all of the "average" brands. i.e. simple marketing.
A split does not "up" the value of the company, artificially or otherwise. And while the Mercedes analogy is probably somewhat correct, it does cost money to split the stock, so they have to feel there is a reason. The reason is generally to make the price more attractive to smaller buyers.
djbeta said:
Look at Berkshire Hathaway. $91,500 per share. Like TommyWillB said, some brands want a higher cost. Berkshire Hathaway does not split or pay dividends. You buy it because you want a piece of Warren Buffet's expertise. They only introduced the 'B' shares (currently about $3,050 a share) in response to pressure from smaller buyers.
Natobasso
Tech-Bot 5000
For an explanation of a stock split, see my link on page one of this thread.
As for splitting a stock increasing its value I would say that, like stock prices themselves. they are governed almost solely by demand. Google is in high demand, therefore its price is higher. Yes, you can study a stock all you want, but in the end, it comes down to how many people are either buying or selling or holding a stock that determines its value.
Splitting a stock makes it more valuable to me because I can then turn around and increase my position in that stock and pay half as much. The hope is, of course, that the stock will continue to climb and my further investment will pay off.
As for splitting a stock increasing its value I would say that, like stock prices themselves. they are governed almost solely by demand. Google is in high demand, therefore its price is higher. Yes, you can study a stock all you want, but in the end, it comes down to how many people are either buying or selling or holding a stock that determines its value.
Splitting a stock makes it more valuable to me because I can then turn around and increase my position in that stock and pay half as much. The hope is, of course, that the stock will continue to climb and my further investment will pay off.
The stock split itself does not make the stock more valuable. The news of the split often causes the price to run up because people generally assume that the price will increase after the split (because the stock is more marketable). The case with most every issue I've owned is that there is a runup before the split, the stock drops a little after, and then continues on to respond to normal market pressure.