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


To: Road Walker who wrote (168879)4/25/2014 2:38:36 PM
From: HerbVic  Read Replies (1) | Respond to of 213177
 
Frankly it makes it a bit easier for me to trim my still overweight position in Apple, averaging out of some shares. With about 40 stocks I spend a lot of time rebalancing to avoid risk. So I think the split sword cuts both ways.
OH, absolutely! The real benefit to investors is greater liquidity in the stock and less dependence on funds and institutional traders.

Arguments that splits don't count because the underlying value stays the same are ridiculous. Many traders are looking for capital gains expansion across multiple shares. One hundred shares increasing in value by only $1 gets the portfolio $100 in capital gains (excluding fees of course); 1,000 shares gets $1000 at the same one dollar increase. At $530 a share, that still holds true, but the amount of capital required to play it that way can quickly overwhelm anyone's small portfolio of less than $200,000.

There is absolutely no doubt to me that a 7/1 split, bringing the price down below $100, will bring many more investors to the issue. I'd expect also that volatility would remain pretty much the same, split adjusted.