Why are stock splits looked upon favorably in the stock market?

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Philosophy Explorer
Posts: 5621
Joined: Sun Aug 31, 2014 7:39 am

Why are stock splits looked upon favorably in the stock market?

Post by Philosophy Explorer »

Can't find a good answer to that question. To me there's nothing to be gained.

Here's an article:

http://time.com/money/2847725/apple-spl ... do-better/

PhilX
thedoc
Posts: 6465
Joined: Thu Aug 30, 2012 4:18 pm

Re: Why are stock splits looked upon favorably in the stock market?

Post by thedoc »

Philosophy Explorer wrote:Can't find a good answer to that question. To me there's nothing to be gained.

Here's an article:

http://time.com/money/2847725/apple-spl ... do-better/

PhilX
Usually when a stock splits the price per share is more affordable to more investors, and there is more investment in the stock. When that happens the price goes back up and investors are making money.
Philosophy Explorer
Posts: 5621
Joined: Sun Aug 31, 2014 7:39 am

Re: Why are stock splits looked upon favorably in the stock market?

Post by Philosophy Explorer »

thedoc wrote:
Philosophy Explorer wrote:Can't find a good answer to that question. To me there's nothing to be gained.

Here's an article:

http://time.com/money/2847725/apple-spl ... do-better/

PhilX
Usually when a stock splits the price per share is more affordable to more investors, and there is more investment in the stock. When that happens the price goes back up and investors are making money.
I've thought of that one and I'm aware that brokerage houses expect a minimum investment in a stock. I wonder how much of a factor that would be? (btw I haven't played the market in years)

PhilX
thedoc
Posts: 6465
Joined: Thu Aug 30, 2012 4:18 pm

Re: Why are stock splits looked upon favorably in the stock market?

Post by thedoc »

Philosophy Explorer wrote:
thedoc wrote:
Philosophy Explorer wrote:Can't find a good answer to that question. To me there's nothing to be gained.

Here's an article:

http://time.com/money/2847725/apple-spl ... do-better/

PhilX
Usually when a stock splits the price per share is more affordable to more investors, and there is more investment in the stock. When that happens the price goes back up and investors are making money.
I've thought of that one and I'm aware that brokerage houses expect a minimum investment in a stock. I wonder how much of a factor that would be? (btw I haven't played the market in years)

PhilX

Many years ago I missed an opportunity to make a bunch of money in stocks, the ironic thing is that I was telling everyone I knew to buy that stock, and then I failed to draw out the funds to buy them myself. The stock went up, split and went up again, and split again before settling above the original price. I could have turned $5,000 into $40.000 in a few weeks. The thing is that I saw it coming, I was working for the company at the time. Since then I have learned something about stocks and trading, but never had the money to play in the stock market. FYI, you can be a small investor, a few stocks, not everyone expects you to buy stocks a block (100 shares) at a time, you just need to find a broker who will work with what you have to invest.
Philosophy Explorer
Posts: 5621
Joined: Sun Aug 31, 2014 7:39 am

Re: Why are stock splits looked upon favorably in the stock market?

Post by Philosophy Explorer »

I used to have access to D & B reports. Based on them I bought Coleco stock and made over $13,000 on the stock. Could have made much more, but I sold out too soon before they came out with their Cabbage Patch dolls.

PhilX
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