No, I "don't see the VALUE for a SHAREHOLDER when it comes to a split"
Please enlighten me and the board.
Let's say a company has 50 million shares outstanding
Investor A owns 100 shares
Shares are split 2:1
Post split there are now 100 million shares outstanding
Investor A owns 200 shares BUT he/she has THE SAME % OWNERSHIP. It's a wash.
Splits signal that the shares HAVE appreciated.
Splits do not affect the operations of a company.
The only "benefit" I derive from a split is that management may be telegraphing that it is optimistic re the future.
Splits do not benefit a company nor a shareholder.
Splits are cosmetic.
Emotional people get excited about splits, but when asked why, no logical response is received.
Riddle me this: how have I, a shareholder of INTC since it paid its first dividend, benefited from its multiple splits...particularly the last split LOL.
What you are missing is that splits have NOTHING to do with a company's value (with the possible exception of a short term pop in price via increased demand from uniformed investors.)
P.S. Anyone who owned 10000 shares of AAPL pre split would own 70000 shares post split, since AAPL split its shares 7:1.
vincent, you are confused.
First off, KMI et al are HUGE and IMO retail investor actions do not have much affect on the share price.
"Cramer has single handedly destroyed more individual's wealth...blah, blah..."
Wrong. Each individual is RESPONSIBLE for their own actions.
If you can't stand the heat, get out of the kitchen!
P.S. It's time you take responsibility for your actions (what a novel idea!)
Perhaps for a low float company, a split MAY be beneficial, but JNJ has plenty of shareholders. IMO, over the long run, a company's value is based on its fundamentals and not how many shares are outstanding.
Some use the weak argument that a retail "investor" is able to buy shares after a split because they can "afford" to do so...hogwash!
When retail invest in mutual funds, they start with how much they want to invest, but for some reason (psychological) when they buy shares in an individual company, they start with how many shares they can buy.
I could care less whether I buy 50, 500 or 5000 shares; it's the DOLLAR value of my investment that is relevant.
Of course, a split occurs AFTER the share price has increased; splits are ends and not means.
I'm not that hip; what does "it increases the firms (sic) BL...mean?
P.S. no, I am not "new to stocks", I just have a non emotional approach to investing.
"Do you somehow believe that the relationships with that firm have terminated?:"
No, not necessarily and I'm confused why you would suggest so...I simply corrected your statement re Murphy's current employment status.
Since you are nearing retirement, it may make sense to sell some of this fund. FLPSX has allowed you to grow your principal and now may be a good time to redeploy some funds into a more income oriented investment. (Dividend paying stocks, not necessarily bonds given where rates are and where they may be in a few years!) Always a good idea to have some equity exposure while retired, but this fund doesn't provide much income. Of course, the above is generic, not knowing your specific situation.
I couldn't have said it better!!!
Nice to see Julie singled out as an "influential Woman on Twitter"; some time ago, I posted about Julie's voracious tweeting activities.
If only LWAY was so well known!!!!!!!
Isobel Jones, DMND's new General Counsel has a very nice and relevant resume.
Nice timing to have Kim resign while her former employer, BNNY, is being bought out! She probably won't even have to move her residence.
On another note, it is nice to see DMND hanging tough and moving slightly higher on higher than normal volume.
Corrections are normal and healthy.
The problem, if you sell, is to "know" when to be fully invested again!!!
If you pull up a "max" chart of the S&P 500, can you identify EVERY correction? Some are now just blips.
Good luck with your trading; I long ago stopped trading.
Yup, I get entertained by visiting a few boards of stocks I don't own.
Since I am a consumer, I like to follow some of the weed stocks; their moves, and the hopeless optimism espoused by some are interesting to say the least.
I just found it shocking someone would (allegedly) commit all of their investment dollars in a speculation, hence my "WOW!" and "YIKES!!!"
No harm or foul in my post, right???
Have a nice long weekend.
I still can't fathom why you are afraid of identifying the firm you are promoting: Tripp Levy PLLC.
At least this post included "Attorney advertising"...gee I had no idea.
Was your last post done via snapchat???
I'm a customer, but I generally refrain from consuming the freebies. I consciously avoided the WFM near where I work when I knew it was an over the top free sample day; the locals go crazy and get in the way of people who actually want to spend money!
And at 9:43 the Dow is up 50; where will it be in the next two hours? Who knows, and quite frankly I don't care!
Great post, BTW...it's FUN to post!