RE:RE:Stock SplitAarman4 wrote: Exactly how would a split help you? Cheers
cpeczek wrote:
this company should do a stock split soon. The price keeps rising and my DRIP keeps getting narrower in number of shares
lol it's painfully obvious many people have little clue about stock splits, other than feeling like a portfolio manager owning a large number of shares of something with a much lower price. In this case, as with others, a stock split would not change anything in the DRIP as the dividend would also be 'split'.
Most stocks with excessive splits end up topping and dragging for years. MSFT did nothing for over 10 years after bloating it's float into the billions. Telus did the ultimate stupidity last year, they did a 2:1 on a sub $50 stock right in the middle of a crash. Now over $1.2 BILLION shares and the stock will bounce around in a tight range for years. Fact is, the more pieces of paper you have the narrower your trading spread requiring major share purchases just to push it up 10 cents. GSY goes up $1-$2 on a few thousand shares for the precise reason being there are very few pieces of paper available to buy. More impostantly, shorts stay away due to illiquidty as there are very few shares available to short. NO to stock splits.