Thread: Investing 102
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Old 07-10-2015, 06:58 PM
JKnight JKnight is offline
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Share price = firm value divided by shares outstanding

So it could simply be a matter of CMG having fewer shares outstanding and isn't necessarily indicative of likelihood of a split. I always say share price is arbitrary. A 10% gain on your investment in a stock is the same amount of $ regardless of share price. That said, firms understand the psychological impact of having a high share price, and they are incentivized to have people buy, so it could be indicative of a higher likelihood of a split.

So to answer your question...maybe
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