Thread: Investing 102
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Old 03-31-2014, 12:54 PM
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GregWeld GregWeld is offline
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Split adjusted Microsoft (MSFT) had an all time high of about $60....


Remember that when a company splits it's stock - the price is also adjusted. So if a company was trading at $100 a share -- and splits TWO FOR ONE (2:1) -- you'd have twice as many shares but at HALF the price. The new shares would trade at $50. You'd still have the EXACT same amount of money invested. But you'd have twice as many shares.

Splits add NO VALUE... but have generally been perceived as a "good thing".

Beware REVERSE splits -- which is when a companies shares SUCK -- and in order to not be de-listed they do a reverse split and (for example) take 10 shares trading at $1 -- and make ONE (1) share trading for $10.
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