SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Lucent Technologies (LU)
LU 2.530+1.6%3:40 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Rob L. who wrote (1555)3/10/1998 9:10:00 AM
From: LWolf  Read Replies (1) of 21876
 
Hi Rob, last time....

In your example:
>> a move from 54 to 69 is the same as a move from 108 to 138<<
which is a 27.7% increase in both cases
100 shares at 108 = 10800 (base cost)
100 shares at 138 = 13800 (30 point increase = 27.7%)

200 shares at 54 = 10800 (split adjusted cost)
200 shares at 69 = 13800 (15 point increase = 27.7%)

So in your example the stock must increase by 30 points in presplit condition to get a 27.7% gain. What do you suppose the buying pressure (mass market psychology) is on a higher price stock vs lower price stock. It would seem to me that there would probably be more pressure on the lower price, and the 15 point gain would be achieved more rapidly.

And yes you'd have more shares at a lower cost(assume no additional investments), but higher probability of the value going up quicker, IMO.

Laura
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News