TSXV:AUN.H - Post by User
Comment by
zzthnxon Feb 17, 2013 10:32pm
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Post# 21004216
RE: RE: RE: Listen to credibility instead of prayi
RE: RE: RE: Listen to credibility instead of prayi "A share consolidation should be neutral to the value of a stock. Shareholders end up retaining the same % of ownership in the company. This is the same case as stock splits. To the extent there is an effect for both, it is merely psychological."
Good one, Pepe. That all sounds very nice and logical. Unfortunately the world of investing is not like a science textbook. The market is ruled by psychology and emotions. When investors feel like they're getting the "Shaft", they hit the door.
Gotta love these newbies coming in with their BS, when they have no clue.