You have indirectly brought up another reason I think the rush (assuming there is one) for little investors to pick up shares of QCOM will come right after the split: the $10,000 factor. There seems to be a mental template shared by a lot of people, myself included for this one, about an initial investment of $10,000. For some people the $10,000 amount is basically a cut in stone ceiling. Others are a bit more fluid, adjust a few thousand either way so they can pick up 100 or 200 or 300 shares, that other factor called, "the nice, round number."
As you point out, $100/share itself is a psychological barrier for many. 100, 200, 300, 400, 500--all psychological barriers. One a barrier is firmly broken (upwards), there's almost a sigh of relief.
Come to think of it, stocks splits are a good way for a corporation to handle psychological barriers, not merely a good way to make their stock available to more people.
Lynn |
