RE:RE:RE:RE:RE:RE:Stock SplitAhh, it isn't particularly a bad decision. It might not work so great on the secondary market, however in the primary markets (new issues) it opens up liquidity to self directed investors. Most new issues require minimum subscriptions - typically 100 or 1000 shares to be purchased. This makes the minimum subscriptions more affordable to the average joe, allowing Telus to open it's offereings to more people.
It's alot easier for some people to justify investing $2,600 vs $5,200 (or $26,000 vs $52,000).
Pros:
- opens public offerings to more people (younger people)
- broader market exposure allows offerings to fill much faster
- attractive to younger generation
Cons:
- May affect company image on secondary market
Growth-wise, it's a smart move on Telus's part. Having quick and broad access to capital is hugely beneficial to an ever-growing company. Telus is a solid company, with ambitious goals, it won't be long till we are looking at share prices in the $30's again.. and up from there.