If this happens at 20 cents and you get twice as many shares does that mean the pice of the stock decreases to 10 cents????
Posted by metal1 on :
yes, the stock price adjusts for the split. maket forces will determine exactly where it will open though.
Posted by tre308 on :
Is a split profitable?? How can you tell when there is a split?
Posted by metal1 on :
in reality a split means nothing for the company. its like getting change for your dollar. instead of having 1 dollar you now have 4 quarters (that would be a 4-1 split). not sure what you mean by are they profitable. during the dotcom boom, stocks would run huge on split news. for short term traders that it created good volatility but we all know how that ended up. companies announce splits, they don't just happen.