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McDonald's Corp. Message Board

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  • gobraves39401 gobraves39401 May 12, 2011 5:14 PM Flag

    Stock Split

    I hate when people say who cares about stock splits….they are very good for a small investor over the long turn…more shares and smaller price to get in at means more buying….I for one know people I work with that are small investors that invest only a couple hundred a month and they think,looking only at the stock price,that MCD is high.I for one don't care as I got in MCD @$56.86 and would love a stock split.

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    • Stock split, heyyyy!!! You better care it's been good. It's a gold mine, go for it 2 for 1 or 3 for 2 stock split.

    • foolish justification.

      taking your example of only investing a couple hundred a month, let's say $240. If the stock is $80, you buy 3, if it's $40 (assuming 2/1 split), you buy 6. btw, the price of a stock in itself does not dictate whether or not the price is high -- you need to look at other factors, for example p/e, peg, etc. Stock splits are NOT good for the small investor, you just buy less shares at a higher price/shr instead of more shares at a lower price/shr. A smaller price per share does not mean more buying.

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