SIGforum
Apple and Tesla stock splits coming up
August 16, 2020, 02:59 PM
EdmondApple and Tesla stock splits coming up
I know we have some investors here.
I bought some Apple recently, I failed to buy it last time it split in 2014. I have regretted that ever since.
I think this is a great opportunity to get into companies, especially Tesla, where the stock price was quite high.
Apple will be a 4 for 1 split eligible if you own shares as of 24 August; and Tesla will be a 5 for 1 split eligible if you own shares as of 21 August.
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August 16, 2020, 03:11 PM
Rey HRHThere's not much point in stock splits these days except maybe each dollar increase in the stock price is a higher percentage than pre-split price.
I know the rationale is to make the per share price lower and easier to reach 100 share lots but with low or no commission stock trades, fractional shares index, etc., that's been made moot.
"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.
August 16, 2020, 03:15 PM
El Cid 92This always boggles my brain..... you have the same cost basis. You are just gaining a lower cost per share after a split. Thus it is a lower cost to buy more shares.
No real change in what you have invested. And you have not "magically" gained more shares.
Andrew
Duty is the sublimest word in the English Language - Gen Robert E Lee. August 16, 2020, 03:28 PM
craigcpaAttracting new investors. Simple as that.
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Just my 2¢
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Clowns to the left of me, Jokers to the right ♫♫♫
August 16, 2020, 03:32 PM
Scoutmasterquote:
Originally posted by El Cid 92:
This always boggles my brain..... you have the same cost basis. You are just gaining a lower cost per share after a split. Thus it is a lower cost to buy more shares.
No real change in what you have invested. And you have not "magically" gained more shares.
Andrew
True. But "the market" tends to not like stocks that are more than ~$500 per share, or less than ~$35(ish) per share.
Berkshire Hathaway (Warren Buffet) Class B stock is $182 per share. But their Class A stock is um, well, er, uh, $273,475 per share.
"Liberty lies in the hearts of men and women. When it dies there, no constitution, no law, no court can save it....While it lies there, it needs no constitution, no law, no court to save it"
- Judge Learned Hand, May 1944 August 16, 2020, 03:41 PM
joel9507A blonde investor was out for pizza, and ordered an individual size pizza. The waiter asked if she wanted it cut into 6 or 8 slices. She replied, "Oh, 6, of course. I could never eat 8 slices."
I think there are a lot of blonde investors out there.
August 16, 2020, 03:43 PM
6gunsRegardless of the numbers, it does have a psychological effect.
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August 16, 2020, 04:20 PM
wishfull thinkerquote:
Originally posted by Rey HRH:
There's not much point in stock splits ...
...per share price lower and easier to reach 100 share lots but with low or no commission stock trades, fractional shares index, etc., that's been made moot.
Under some circumstances for some investors changing 25 for 100 with the same basis increases choices on how to handle the stock; it makes it possible to sell calls against the shares, perhaps avoiding the volatility risk of buying a long call and using that to cover.
The way I see it, there is no harm and including the options some good points as well.
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August 16, 2020, 04:21 PM
RAMIUSquote:
Originally posted by 6guns:
Regardless of the numbers, it does have a psychological effect.
Everyone wants to “ride it back up”.
August 16, 2020, 06:54 PM
Edmondquote:
Originally posted by RAMIUS:
quote:
Originally posted by 6guns:
Regardless of the numbers, it does have a psychological effect.
Everyone wants to “ride it back up”.
Back in 2014, it split to around $70/share. Last I checked it was around $450/share. Yeah, I'd say some people made some money.
Must have been one hell of a psychological effect.
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August 17, 2020, 05:01 AM
trapper189It does make the stock easier to give away. I give appreciated stock for charitable contributions rather than cash. I don't pay tax on the capital gains, but write off the value of the stock on the day I make the contribution. For example, I have SPY with an $87 basis and the value as of last Friday was $336. If I want to give $1,000 to my church, I transfer 3 shares from my account to their account. I don't pay tax on the $747 gain and I deduct the full $1,008 on my tax return. It's hard to give away $1,000 of Amazon at the moment.
August 17, 2020, 06:52 AM
sig 226quote:
Originally posted by Edmond:
quote:
Originally posted by RAMIUS:
quote:
Originally posted by 6guns:
Regardless of the numbers, it does have a psychological effect.
Everyone wants to “ride it back up”.
Back in 2014, it split to around $70/share. Last I checked it was around $450/share. Yeah, I'd say some people made some money.
Must have been one hell of a psychological effect.
Yup, I invested a good amount at $94. I will also before the split as the money for me is in a Roth and a long term hold.
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