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(Marketwatch)   GameStonk 4Ups   (marketwatch.com) divider line
    More: Followup, GameStop Corp., Stock market, common stock, Stock, Market capitalization, split of the company, Free float, Concentrated stock  
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668 clicks; posted to Business » on 07 Jul 2022 at 1:05 PM (4 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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2022-07-07 1:16:20 PM  
are stock splits still needed if people can buy fractional shares?

or is this something done now just to make the stock numbers look how the company wants it?

recall Berkshire-Hathaway almost broke the stock system since they won't split the stock to bring the price down.  The price is higher than the space allotted to store the price number.

here it is
 
2022-07-07 1:30:12 PM  

Hyjamon: are stock splits still needed if people can buy fractional shares?

or is this something done now just to make the stock numbers look how the company wants it?

recall Berkshire-Hathaway almost broke the stock system since they won't split the stock to bring the price down.  The price is higher than the space allotted to store the price number.

here it is


It "might" get your stock in the DJIA.  That's why Amazon did it:

Amazon's Stock Split Could Help It Get into the Dow
There's another reason Amazon may be choosing to split its stock: The possibility of being included as one of the 30 stocks that make up the Dow Jones Industrial Average (DJIA).
Unlike other leading stock market indexes, the DJIA is a price-weighted index. That means the 30 component companies in the Dow are weighted in the index according to their stock price-rather than their market cap, as is the case with S&P 500 component companies.
The DJIA includes some of the biggest companies by market cap in the U.S. stock market, but they also prefer to maintain a relatively even balance when it comes to share price. They don't want high-priced stocks to have an outsized impact on the performance of the index.
"The Index Committee monitors whether the highest-priced stock in the index has a price more than 10 times that of the lowest," wrote S&P Dow Jones Indices, which manages the index, in its most recent methodology statement for the DJIA.
Amazon's stock split makes it more attractive as a component in the price-weighted Dow. It's already among the largest companies on earth by market capitalization. At a split-adjusted price of $124 a share, Amazon would be right in the middle of the pack of share prices of current DJIA components.


As for GS, it's probably a way to get their meme investors to think they're getting free shares or a great price or something.
 
2022-07-07 3:02:27 PM  
They should offer a 4 used game to 1 new game split at their stores.
 
2022-07-07 3:05:24 PM  

Hyjamon: are stock splits still needed if people can buy fractional shares?

or is this something done now just to make the stock numbers look how the company wants it?

recall Berkshire-Hathaway almost broke the stock system since they won't split the stock to bring the price down.  The price is higher than the space allotted to store the price number.

here it is


I've been mentoring a friend about personal finance for years and he still can't get past the of "cheap stocks" versus "expensive stocks" based on share price alone.  Fortunately, he's dollar cost averaging mostly into index funds.
 
2022-07-07 3:09:41 PM  
In some ways this makes a lot of sense. GME has posted a loss of $6.29 per share on a trailing twelve month basis. This will cut their losses per share to only $1.57. Brilliant!
 
2022-07-07 3:22:42 PM  

Rapmaster2000: It "might" get your stock in the DJIA.  That's why Amazon did it:

Amazon's Stock Split Could Help It Get into the Dow
There's another reason Amazon may be choosing to split its stock: The possibility of being included as one of the 30 stocks that make up the Dow Jones Industrial Average (DJIA).
Unlike other leading stock market indexes, the DJIA is a price-weighted index. That means the 30 component companies in the Dow are weighted in the index according to their stock price-rather than their market cap, as is the case with S&P 500 component companies....

As for GS, it's probably a way to get their meme investors to think they're getting free shares or a great price or something.


Thanks for that info.  I would wager the same as you then. splitting stocks as a PR maneuver.
 
2022-07-07 7:54:05 PM  

Hyjamon: Rapmaster2000: It "might" get your stock in the DJIA.  That's why Amazon did it:

Amazon's Stock Split Could Help It Get into the Dow
There's another reason Amazon may be choosing to split its stock: The possibility of being included as one of the 30 stocks that make up the Dow Jones Industrial Average (DJIA).
Unlike other leading stock market indexes, the DJIA is a price-weighted index. That means the 30 component companies in the Dow are weighted in the index according to their stock price-rather than their market cap, as is the case with S&P 500 component companies....

As for GS, it's probably a way to get their meme investors to think they're getting free shares or a great price or something.

Thanks for that info.  I would wager the same as you then. splitting stocks as a PR maneuver.


They just lost their CFO and laid off a number of folks, so this is definitely smokescreen material.
 
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