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Abbott Laboratories Message Board

  • kaz-modan kaz-modan Feb 17, 1998 4:50 PM Flag

    nice rise

    wow, abt is up 10 points since jan 1.

    who cares about splits. i could care less about them. with a split, you own twice the amount of shares for half the price. therefore whats the difference.

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    • I'm not a experienced investor per se, but I think that the main advantage in this stock split is basically a mathmatical matter. Even if the "market value" of the stock is split in two, the idea is that any gains after the split will necessarily be multipled by two.
      Ie, 1 pt gain X 1 share = $1 dollar gain.
      1 pt gain X 2 shares = $2 dollar gain.
      There is no reason to believe that gains on the post-split shares will also necessarily be divided by a factor of in half.

      Market value should increase by a factor of 2 when twice as many shares are owned.

      (example: I own DUK (any energy stock). Its gained 15% since this time last year. If it had split at that time, I would have twice as much gain.)
      Would appreciate your comments on my analysis Kaz-modan.

      J. Campbell

36.95-0.96(-2.53%)4:00 PMEDT