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Technology Stocks : Apple Inc.
AAPL 278.28+0.1%Dec 12 9:30 AM EST
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To: Zen Dollar Round who wrote (168803)4/24/2014 12:31:57 PM
From: i-node1 Recommendation

Recommended By
Ryan Bartholomew

  Read Replies (1) of 213176
 
>> While a share split doesn't technically change anything about valuation, it does drive investment.

The important point is that there is no statistical evidence to suggest that a stock post-split does any better than it would have done without the split. Stocks that are splitting up are usually doing so because they're performing well anyway and it is very difficult to attribute any rise after the split to anything other than a continuation of good performance.

This topic has been studied time and again, including by me in my master's thesis nearly 40 years ago. I don't think anything changed since then: It just doesn't matter.

Today, I can easily buy 10 shares at $500 or 100 shares at 50 and it literally makes no difference to me at all. Used to, buying in less than round lots cost more; today, even that isn't a factor. A thoughtful person who wants to invest $5,000 would have no reason to care which he does.
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