Not investors. Most people who invest long term do the investing as a percentage of their holdings. As a retiree, I would not want KO to be a large percentage of my holdings. I want stocks and bonds that give a larger dividend, like electric utilities.
The small investor does not buy stocks at $80 (Very Often)
however they will buy in the $40 range. At $40 New buyers come in and the stock rises back to $80 - The stock will go from $40 to $80 much faster than it goes from $80 to $120 - the initial split (one at $80 or two at $40) does not change anything.. Its what happens after the split that makes us money.
The sooner the Split the Better....
Usually when there is a split, the Corp. also raises the dividend. Keep in mind if there is a 2-1 split, the dividend also is cut in half. But, if it follows historically, the dividend raise will result in added dividends. It is usually true, shortly after a split the share price goes up faster than it will prior to the split. However, after the share price goes up, some investors sell part of the split and the result is a drop in share price for a period of time.
pebobuck knows stock splits!
KO will split and the price will be back up fast,
like people think they are getting the same stock at a discount. Its magic, tell its not. But if they sell everyone in China and India a Coke.
Well KO might be worth more then AAPL. (KO taste better!)500 products? Time for a spin-off!
Everyones comments about split mathematics are factual, however, the last time Coke split 2-for-1 in 1996, shares popped 2.5% in the first day and ran up 13% over the next 10 days. A year later, it was up 40%. I understand the pizza stories, but investor will bid this up simply due to the split.
Awesome ! A very nice surprise, I will continually add to my KO position regardless of price, but the split will help me along.
"but the split will help me along."
When you "continually add" don't you decide how much money you will be investing? Whether you get 20 KO shares at 75 or 40 shares of KO at 37.50 you still invest the same DOLLAR amount, right?
If a pizza is cut into four slices or eight slices, the value/cost of the pie is the same!