stock splits are interesting... because there can be many aspects to it... could be that management have set a price for the stok to trade at and they split it to keep it then every year. it could be also that the stock is overvalued and the want to bring its market price back to normal value... or it could be that the management wants some money and does it by bringing in new investors... the original value of the company doesn't change i know that i contradicting with what i said in point 2 because if lets say u have 100 shares trading at 2$ then value is 200 but if u have 200shares trading at $1 u still value it at one buck. usually people invest in splits because it allows them to enter and slightly speculate for the price to get higher and pick up some profit... i personally don't like it much because there are too much odds against me... well i hope that answers ur questions... chahinemm
That was extremely helpful. Thanks a billion! I was a bit anxious to invest in a couple companies who were planning to execute a 2 for 1 split, but now I will approach them with a greater amount of scrutiny. :D
splits are not necessarily bad if the company is good and that means it gives u the opportunity to enter low. usually a day or 2 after split the prices tend to tank a bit which give u a slightly higher entry price edge.. chahine
I've been eyeing ADSK lately because it's been planning a split. How do I determine what percentage of its shareholders are insiders? Is that public info? Does this seem like one with considerable upswing potential after the split? I'm highly interested in it, and I'm just looking for a second opinion. :D
for the insider here is the link http://finance.yahoo.com/q/ks?s=ADSK under the share statistics u will see % held by insiders for the upswing potential i don't know cause ill have to analyze the business first... but maybe some1 can fill in in that part.. chahine