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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Zen Dollar Round who wrote (168803)	4/24/2014 9:58:37 AM
From: Ryan Bartholomew	Read Replies (1) \| Respond to of 213176

When the minimum investment climbs to a level that begins to exclude a lot of people, then there could be a gain. There are many people who want to buy two or three thousand dollars worth of stock, so splitting something that climbs to four figures might release some pent up demand in that respect (albeit there are vehicles to invest in partial shares, they're not widely used nor economical). Of course, some (like Warren Buffet) will argue that there's a benefit to excluding those who aren't committed enough to invest larger amounts. In this case, Apple's price isn't to a level where there are likely many people excluded by the minimum, and dropping to below $100 isn't suddenly going to release demand. There may be other factors for doing it (index weighting, etc.) but it amounts to playing with numbers, not a real gain for the company. Much like the dividends and share buybacks.

To: Zen Dollar Round who wrote (168803)	4/24/2014 12:31:57 PM
From: i-node	1 Recommendation Recommended By Ryan Bartholomew Read Replies (1) \| Respond to 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.