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Brown Cafe UPS Forum
UPS Partners
$200 stock price then stock split
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<blockquote data-quote="Popeye" data-source="post: 4874598" data-attributes="member: 29236"><p>A stock split does not increase the value of the stock. Shareholders end up with more shares, but each share is worth less. The split has zero impact on the total value of their total holdings. It’s like taking the same size pizza and cutting it in 8 slices instead of 6. You end up with the same amount of pizza either way. The thinking is that the lower share price after the split makes the stock easier to purchase in blocks. The way financial markets and trading technology have evolved, this idea is pretty much obsolete.</p></blockquote><p></p>
[QUOTE="Popeye, post: 4874598, member: 29236"] A stock split does not increase the value of the stock. Shareholders end up with more shares, but each share is worth less. The split has zero impact on the total value of their total holdings. It’s like taking the same size pizza and cutting it in 8 slices instead of 6. You end up with the same amount of pizza either way. The thinking is that the lower share price after the split makes the stock easier to purchase in blocks. The way financial markets and trading technology have evolved, this idea is pretty much obsolete. [/QUOTE]
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$200 stock price then stock split
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