“Here’s What It Means for Investors.”
Nothing. Splits don’t do anything for stockholders.
Not current ones, true....................
“The stock has also outperformed after splits, by 700 basis points after three months, and 610 basis points after 6 months.”
Nothing. Splits don’t do anything for stockholders.
Mostly true, but for some people there is a minor improvement. We give to our church by donating highly appreciated shares of AAPL. (The tax advantages are nice.) A lower share price means we can come closer to giving any particular amount.
Depends on the overall market for the stock. At one time I had Etrade bought at 25. It went to 100 when it split 4 for one. Back to 25, it quickly rose again to 100, where it once again split 4 for one. Of course that was during the dot com bubble, but in the current tech bull market, AAPL is at 500. After Friday it will be about 125. It could easily go to 200 fairly quickly. We shall see.
if you have more shares, you get more dividends don’t you?...wish I had apple shares...
Not so sure that statement is correct. Often the individual shares are traded higher than the original combined value. At $500 a share, a 4 to 1 split would expected to be $125. But often we will see at the end of the day the individual shares will be $130+. Also shares will now be more available to a broader market. Kind of like Berkshire-Hathaway at $326,887 is not within many investors reach regardless of the value and performance of the stock
I think they do. As was mentioned, one does not have to purchase a 28,000 share stock. People are more likely toi buy 100 shares at a reduced price.
Well - not at the moment it happens, but more often than not, it stimulates demand for the stock at the more affordable price, which typically drives the stock price higher, especially with a company that has been consistently meeting earnings and growth estimates and goals.