it was $1,633 a share. Today it's at $19.52 a share. Unrealized loss of $1,614 a share...

This whole bitcoin thing has me confused and I don't know much about it but to me it seems like you're playing with fire.

Bitcoin is down, but not nearly that much.

That stock had a 91-for-1 split over the weekend.

In other words, for every $1600 share you had on Friday, you now have 91 $19 shares.

http://markets.businessinsider...it-2018-1-1014448868

quote:

Originally posted by maladat:
That stock had a 91-for-1 split over the weekend.

I think this might be an opportunity for some folks to make some money. What do you think?

quote:

Originally posted by maladat:
That stock had a 91-for-1 split over the weekend.

In other words, for every $1600 share you had on Friday, you now have 91 $19 shares.

Which results in a $129 profit. So no loss.

Stock splits are normal. (Though not usually of this magnitude... the largest stock split in US history was apparently 100-for-1 by Texas Pacific Land Trust on the New York Stock Exchange in 1927.)

quote:

Originally posted by Edmond:
it was $1,633 a share. Today it's at $19.52 a share. Unrealized loss of $1,614 a share...

This whole bitcoin thing has me confused and I don't know much about it but to me it seems like you're playing with fire.

Based on the split, it was worth $17.94 per share and today $19.52.

If it gets back to the $1,600 territory, that means some people could make a lot of money with the split.

quote:

Originally posted by Edmond:
If it gets back to the $1,600 territory, that means some people could make a lot of money with the split.

It sounds like there may be some confusion about what happens in a stock split... the total value of all existing GBTC stock, and the value of the shares owned by an individual investor, did not really change.

The GTBC people basically said "we think there are people that want to buy some of our stock, but not $1600 worth of our stock," so they decided to split each share into 91 shares, each worth 1/91 of the value of the old shares.

If you had $100,000 of GBTC shares on Friday, you still have about $100,000 of GBTC shares today. You just have 91 times as many shares each worth about 1/91 as much as before.

It doesn't really make sense to talk about the price getting "back" to $1600. That would be the same as if the split hadn't happened and the per-hare price got up to $128,000.

Yes, I understand what you mean.

If I had 1 share last week, I have 91 shares today while the portfolio is still valued the same. But if the 91 shares rise in price, that means I make money if I sell, right?

quote:

Originally posted by Edmond:
Yes, I understand what you mean.

If I had 1 share last week, I have 91 shares today while the portfolio is still valued the same. But if the 91 shares rise in price, that means I make money if I sell, right?

Sure, but that doesn't really have anything to do with the split, per se. If it had risen in price without the split, you'd make money, too.

They're obviously hoping that making the per-share price more accessible will lead to more investment and a higher price, but I don't think splits are usually expected to have a huge impact on value.

quote:

Originally posted by maladat:

Sure, but that doesn't really have anything to do with the split, per se. If it had risen in price without the split, you'd make money, too.

They're obviously hoping that making the per-share price more accessible will lead to more investment and a higher price, but I don't think splits are usually expected to have a huge impact on value.

Yep, it's the psychological impact of seeing a lower share price. A stock split is similar to selling a 12" stick for $20, splitting it in half and selling each half for $10.

The seller goes, "Look, I can buy a stick now for only $10!"

Yeah, the stick is only half as long as yesterday.

"Yeah, I know that. But it's still ONE stick!"

all I know about it is what was discussed in an earlier thread. Something about, rabbits, chickens or squirrels, maybe. I cannot remember the details.

Have at it boys and girls. For me, top ramen. Its whats for dinner!