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Technology Stocks : Apple Inc.
AAPL 280.520.0%10:38 AM EST
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To: Doren who wrote (170690)6/9/2014 6:03:00 PM
From: HerbVic  Read Replies (1) of 213173
 
CEOs and boards would not go to the trouble of splitting stocks if it wasn't profitable.
Essentially the same argument I used on Ryan, but I said that management expects good times ahead if they're splitting the stock, and they are privy to inside information.

Every stock is the company's currency. The management of any company will have at their disposal numerous tools for the manipulation of that currency. The split is just one of those tools. I used to wonder why a company would do buy-backs and splits at the same time. The answer is simple. Both exercises make stockholders, which includes management, more wealthy.
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