Forum - View topicNEWS: GDH Announces Share Split
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Joe Mello
 Posts: 2255 Location: Online Terminal |
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Okay, I'm a little business un-savvy. What does splitting stocks mean?
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Tempest
 I Run this place.ANN Publisher  Posts: 10420 Location: Do not message me for support. |
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A stock split is when you replace each old share with two (or more) new shares, increasing the number of shares in the company and decreasing their value.
For example if X. Corp has 1000 issued shares worth $200 each, it could split these into 2000 shares, and the shares market value would become $100 each. As an owner of X. Corp shares, the number of shares I own would double, and the total value of my shares would be unchanged. Stock splits are done when the value of the shares gets too high. High valued stocks are an impedance to trading, because people may not want to invest so much in the company, or they might want to invest some sort of inbetween value. For example, if I want to buy $300 of x corp shares, and they're worth $200 each, I might decide to only buy $200 worth, or I might invest in a different company. Likewise, if I only wanted to invest $100, X Corp would be out of the question. This might seem silly, since $100 is a small investment, but remember thatmany people's investments are made on a weekly basis, they invest a certain ammount of money (say $150) each week towards their retirement. While most people in that category invest in funds, some do invest directly in stocks. With the stocks more accessible, the ammount of trading will increase, hopefully pushing their value up. -t |
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Tamakun
Posts: 39 |
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GDH's animation business contributes 534% of its business volume
I'm assuming that's actually supposed to be 53% or 54%? |
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Godaistudios
Posts: 2075 Location: Albuquerque, NM (the land of entrapment) |
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Or possibly 53.4%, though with the other figures mentioned (whole numbers), that's unlikely.
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Exinex
 Posts: 27 Location: Mankato, MN |
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Stock splits are usually a healthy sign for a corporation. Walmart has had 11 (2:1) splits for instance. That's a lot of stock!
Comment: In the article, I think you should write it 2:1 which is normally how I see it written. The first number indicates how many stocks you will receive from each stock you own (the second number). |
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Tempest
I Run this place. ANN Publisher Posts: 10420 Location: Do not message me for support. |
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54%, fixed. |
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Joe Mello
Posts: 2255 Location: Online Terminal |
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Arigatou gozaimasu! I'm sure I wasn't the only person who had this question.
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