If you knew that a stock was going to split 2-1 or 3-1?
By billionaire5
@billionaire5 (1333)
United States
5 responses
@34momma (13882)
• United States
26 Apr 07
my knowledge of the market is not where i would like it to be at this time, but if someone told me that i could double my money and they knew what they were talking about i may be interested in investing a few hundred or so
@Methodless (882)
• Canada
26 Apr 07
To achieve that kind of reward would take substancial risk or time.
You would need to basically be willing to lose the money you'd put in.
If you can double your money safely every 3 years, you are doing well.
2 people like this
@billionaire5 (1333)
• United States
27 Apr 07
Well you can learn and not have to use a dime of your own money. They have a live game which you get 100,000 to buy stock in the market. You can practice trading while learning at no risk and no cost to you. www.thestreet.com
@Methodless (882)
• Canada
26 Apr 07
You do realize that when a stock splits, their value decreases by the same factor and the net worth of your investment stays the same, right?
Granted, after a split prices tend to go up because of the excitement.
1 person likes this
@billionaire5 (1333)
• United States
26 Apr 07
I understand that the value of the stock will flucuate up or down by the excitement the announcement generates and that the shares of stock increase. For instance ATR has announced a split the value of the stock has gone from $69.00 at announcement and is now $75.81. The split will pay out on May 9th. What do you mean by there value?
@Methodless (882)
• Canada
26 Apr 07
The value of the stock.
If that stock splits 3-1, each share won't be worth $75.81, it'll be $25.27 and you'll have 3 times as many shares.
1 person likes this
@billionaire5 (1333)
• United States
27 Apr 07
All in all you still can make a substantial profit before and after the split.
@optionsguru88 (310)
• Singapore
25 May 07
Hi :
When a company decides to do a stock split, the management would usually put in effort to improve its earnings performance so that the stock price would appreciate to its pre-split price level and the management's holdings would also appreciate accordingly. Look at how the stock price of Apple Inc. has appreciate although it has gone through a few stock splits.
A current good example would be Buffalo Wild Wings (ticker : BWLD) which has appreciated more than $5 per share since its 2 for 1 stock splits announcement on 18 May 2007.
Yours Truly,
Tony Chai
a disabled trader
http://options4u.blogspot.com
@efreddy (250)
• Belgium
28 Apr 07
When a stock was going to split in 2-1 or 3-1 ;the stock value of the stock should go down to 0.5 or 0.33,but the announcement could lift the stock up because there is more liquidity in stocks of a lower price.
The reason that a stock split is more important.
@haresh99b (10)
• India
29 May 07
the money rarely doubles immediately on splits..
its value halves on a 2:1 split.. then it may rise again due to higher liquidity flow.
