For advanced traders, a cheaper share price means you can buy more shares, which can come in handy if you like to make premiums by selling covered calls. Aside from buying fractional shares, a high share price can be daunting and dissuade people from even trying to invest in the company. But you also cannot deny the psychological impact a stock split has on the minds of investors, particularly retail investors. As the saying goes: there are just more slices of the same pizza. Mathematically speaking, a stock split does nothing to alter the value of a stock or company. But that’s not really how it works, right? Last year, Apple (NASDAQ:AAPL) and Tesla ($222.91|-6.39%) both executed stock splits and saw a tremendous bull run into the split date, as investors tried to get their hands on as many shares of these valuable companies as possible.
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