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| esquire415 |
 Posted: Sat Oct 06, 2007 6:00 am Post subject: Stock splits |
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Investing Manager
Joined: 02 Jun 2006
Posts: 312
This Month: 1
116231.90 e$
Net worth: 116,231.90
Portfolio Value: 0.00
Monthly Return: 1.92%
Trades this month: 8
Churn Rate: 0.00%Items
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| The simulator is not taking into account stock splits. I've held VIP for a while and they did a 5-1 stock split a couple of months ago. It has skyrocketed since and the simulator is telling me that I am losing big money on it. Please fix it. Thank you. |
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| JRW-910 |
| Posted: Sat Oct 06, 2007 5:29 pm Post subject: |
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Administrator
Joined: 01 Feb 2007
Posts: 182
This Month: 0
Location: New Jersey, USA
32978.05 e$
Net worth: 33,064.91
Portfolio Value: 36.86
Monthly Return: -9.75%
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Churn Rate: 0.00%Items
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Please send me a PM with a link to an article detailing the split and I will take care of it.
Thanks,
-JRW |
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| ithatheekret |
| Posted: Wed Nov 28, 2007 6:19 am Post subject: |
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Investing Sr. Associate
Joined: 22 Nov 2007
Posts: 51
This Month: 0
3782.02 e$
Net worth: 23,572.02
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There was a rumour floating around at he beginning of he month , hinting at a GOOG split .
Rumour and conjecture I think , or the stock would've mysteriously jumped up higher one or two days this month at least . |
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| prs1065 |
| Posted: Fri Feb 01, 2008 11:08 am Post subject: |
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Investing Sr. Associate
Joined: 01 Sep 2007
Posts: 137
This Month: 1
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Portfolio Value: 36,121.00
Monthly Return: 4.37%
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| cptken |
| Posted: Sat May 03, 2008 4:03 pm Post subject: |
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Investing Sr. Associate
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| can anybody explain to me how a stock splits and its how it all works for the investing people |
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| deprived |
| Posted: Mon May 05, 2008 7:25 am Post subject: |
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Investing Sr. Associate
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A stock split is created in order for company to generate new cash for a various reasons, company expansions, buyouts, R & D, new product lines and a few others.
Basically the stock you own is divide by the split ratio, creating more shares that you own. examples 2 to 1 split , your original stock was value at $20 a share, if you own 1 share it now becomes 2 shares worth $10 each. 3 to 2 split = 1 share now becomes 1.6667 shares, another way to look at it is 2 shares become 3 shares.
Then you have reverse splits- which is where your stock value increases.
ex: 2 to 1 split = 20 shares become 10 shares, so if you had 2 shares at $10 it now becomes 1 share worth $20.
3 to 2 split = 1 share value @ $10. is now worth $16.67
Remember always to do your research .
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| cptken |
| Posted: Mon May 05, 2008 10:00 pm Post subject: |
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Investing Sr. Associate
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| thanks for the explanation it was very helpful |
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| Im Not Warren Buffett |
| Posted: Tue May 06, 2008 4:51 am Post subject: |
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CFO
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| deprived wrote: | | A stock split is created in order for company to generate new cash for a various reasons, company expansions, buyouts, R & D, new product lines and a few others. |
Stock splits are a non-economic event.
Your explanation beyond this is correct, though. |
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| deprived |
| Posted: Wed May 07, 2008 3:46 am Post subject: |
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Investing Sr. Associate
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 Thank's for the correction, but i am confused. What constitues an non-econmic event (not trying to be rude here). The example i can see is this; and this still can be consider an econmic event Tthe fact that the company is trying to increase stock purchases to a round number, which is truely trying to get more investor's to buy becasue the price is too high.
This explaination comes off investopedia.com
A corporate action in which a company's existing shares are divided into multiple shares. Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, because no real value has been added as a result of the split
One reason as to why stock splits are performed is that a company's share price has grown so high that to many investors, the shares are too expensive to buy in round lots. |
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| Im Not Warren Buffett |
| Posted: Wed May 07, 2008 4:02 am Post subject: |
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CFO
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The round lot argument should be taken out to the woodshed and shot, it's a relic of pre-1990s times when there were extra brokerage fees for not buying a "round lot" - i.e. a multiple of 100 shares. Now, it's no problem to do so, and any number of brokers will let you buy 10, 20, 34, 47, etc. shares.
When I say non-economic event, that means there is no economic impact in the sense that it doesn't create or destroy any value. It would be like if you have a box of pizza, unsliced, and I go and cut it in half and give it to you. There is no not change in how much you have... it's just more easily divisible. |
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| deprived |
| Posted: Wed May 07, 2008 4:21 am Post subject: |
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Investing Sr. Associate
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| cptken |
| Posted: Wed May 07, 2008 9:32 am Post subject: |
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Investing Sr. Associate
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| that helps out a lot guys i understand now so really all a company is doing is getting the price of the stock down so they get more trading. |
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