Allstocks.com's Bulletin Board: 10 to 1 Forward Split

This is topic 10 to 1 Forward Split in forum General Investing Topics at Allstocks.com's Bulletin Board.

To visit this topic, use this URL:
http://www.allstocks.com/stockmessageboard/ubb/ultimatebb.php/ubb/get_topic/f/9/t/002277.html

Posted by Ticker on :

I know that it means I will own 10 shares for every 1 I have now... but what usually happens to the price per share (is that pps?) when a split happens?

Thanks ever so much!!!!!!!!!!!!!!! [Wink]

Posted by T e x on :

adjusted accordingly: forward split reduces pps, reverse split increases (but it usually doesn't hold, dropping to some unknown degree to be determined by the market). Forward splits sometimes work out profitably. For example, price before is $1, so after it is .1 (10:1); but if buying commences, it may go .1023, .1025, .1045, etc. The circumstances are relevant, and always different.

Posted by Ticker on :

Will favorable PR`s and an excellent profit statement effect a split positively?

I am eyeing one that is getting ready to split...

Thanks much for the info! [Smile]

Posted by Smash on :

Under the right condition, forward splits can be very beneficial to stockholders. Reverse splits almost always end up lowering the stock value (See NPWZ, 200:1 r/s). But forward splits are attractive because new investors will find the "lower" price more appealing, and stockholders like the idea of raising their share count (even though all the above is the same, technically, as before the split).
But normal investing rules still apply. If the companies condition create a demand, a forward split may end in very favorable results. If the company is poor, and tries to forward split to create interest, then any gains from that would likely fade with little time.

P.S. - I'm pretty sure a splits are expressed in current shares to new shares. So you would actually say 1 to 10 split or 1:10 split. Or 200:1 for the reverse split.

Posted by Ticker on :

Thanks for the info! AMNE split, and I got in, and PKPL is going for a 10-1 forward split... [Wink]

Posted by Ticker on :

Oh mybad! Yes, 1-10 makes more sense (no Einstein here, folks) [Wink]

Thanks again for the GREAT info!