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


To: Ryan Bartholomew who wrote (168821)4/24/2014 10:59:07 AM
From: Art Bechhoefer  Read Replies (1) | Respond to of 213177
 
Buying shares near $80 would be more attractive for several reasons (for individual investors).

1. If you want to sell some at a later date when the stock has advanced, you can do that more easily because you have more choices on how much to sell.

2. If you want to donate appreciated shares to a tax exempt charity, that works for the same reason.

3. There is also an old custom of buying round lots (i.e., some multiple of 100 shares) that dates from the time when commissions were less on round lots. While this is no longer true today, a lot of investors (like me) still think in terms of round lots.

4. And of course, for those who might want to give Apple shares to their children or grandchildren, buying a couple of shares at $80 gives more choices than one share at $560.

5. Finally, it is easier for many investors to compare tech stocks when they're all at about the same level. So you could buy Qualcomm or SanDisk, both of which are suppliers to Apple, at approximately the same price as Apple after the split. Then you could watch all three and decide which one is doing better.

Art



To: Ryan Bartholomew who wrote (168821)4/24/2014 3:18:55 PM
From: Doren1 Recommendation

Recommended By
Moonray

  Read Replies (2) | Respond to of 213177
 
> Why would buying, say 4 shares @$560 be less appealing than 28 shares $80?

Its a factor. Its not a HUGE factor but its a factor. If it causes the stock to rise .5% why not do it?

You are arguing that the market is rational.