Would someone like to explain how this process works out immediately and in the long run please??
Posted by metal1 on :
regular old split is simple. you own 1 share of xyz. stock trades at 50. they anounce 2 for 1 split. on the effective date you now have 2 shares. the stock price is also adjusted. the stock will then trade at $25 plus or minus normal daily fluctuations. in the end it means nothing for the company. market cap remains the same. this is part of the reason we had the tech crash. stocks rallied so much on stock split news it was insane. good for trading, bad for valuations.
Posted by ruthie on :
Thanks for the info metal1...
Posted by A.J. on :
My, My - how nice and sweet we are, asking a Q - I already had detailed by TEX!! You mean you didn't catch it - Oh, so sorry.
By the way - do you answer anyone's friendly questions? I have asked for the third time in a row: "Are you by any chance from California?" Had a good reason to ask. Lucky
Posted by metal1 on :