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/biz/ - Business & Finance

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57618733 No.57618733 [Reply] [Original]

Brainlet here. How do stock splits work?
For example, if you have 1 stock that is worth 1000€

They make a stock split because the stock is too high and people cannot buy? So the CEO says, lets split

Then this share become 500€, but you have 2 shares of 500€ each, so you still have 1000€ worth, and people can afford a share of 500€ easier?

Is this it?

If yes, then, HOW THE FUCK is it possible that in 2024 you have to buy whole stocks? with BTC you can buy tiny amounts, so why can't they just allow for smaller fractions of a share? This would be a rare use case I would see of tokenizing this shit.

ALSO, doesn't doing a split have a negative psychological impact of the bullishness of a share? Why would you want to split the fucking share if you lose on the number go up effect?

Imagine your company hits 1000€ a share, people are celebrating, then they cut it to 500€. The psychological barrier of crossing 1000€ is lost. The hype is lost. I really hope MSTR does not do splits.

>> No.57618750

wtf are you on about? fractional shares exist

>> No.57618911

>>57618733
they split your certificate in half.

>> No.57618948
File: 248 KB, 1768x748, tlsa split.png [View same] [iqdb] [saucenao] [google]
57618948

>>57618750
I cannot buy split shares on my bank, so this may require you to sign on some wierd platform and they use weird options shit to fraction the token

>>57618911
yeah but isn't this bearish? if you believe the price may be getting too high for wagies to buy, then you may think, oh I will just wait until they split to buy at half the price. How the fuck isn't this bearish? Plus like I said, if you see it past $1000, you enter into giga FOMO mode. If they cut it to $500, it sucks. I don't see how more liquidity from wagise would compensate the FOMO from richfags as number goes up. So I don't see how splits are not bearish.

>> No.57618982

Some brokers allow the purchase of fractional shares; e. g., IBKR in Europe does it. If you own 20.5 shares, for example, you must be aware that in many brokers you will own 20 legitimate shares and 0.5 of some derivative product (usually a CFD).

If the company is doing welll, stock splits are actually midly bullish sometimes due to the "shares of the company are now cheaper" psychological effect among people with no or a small position in the company.

>> No.57619138

this retard doesnt know how to do a google search on stock splits. dont bother buying securities you infant