Investing 102

[pw2006]

Originally Posted by GregWeld

Well there -- see how you are! Next thing you'll be telling me what to buy!

Google finance or Yahoo finance -- both good for just poking around and looking at stuff. Glad you found it to be somewhat useful.


Companies split their stocks for a variety of reasons -- usually to keep the 'momentum' going in their stock (it creates excitement in the market) and - #1 - to keep their share price "affordable".... People can buy shares at $35 or 50 bucks -- they become "hesitant" when it gets up to $100....

They usually only split like this when the company is GROWING and doing well.

A sure sign a company SUCKS --- a REVERSE SPLIT.... when they take 10 shares and turn them into 1 (expressed as 10:1) !! Citigroup (C) did this awhile back.... because their share price had fallen to about a $1 a share -- at that price -- they get "de-listed". It didn't help.

We could talk about reasons for days - but basically it's (a stock split) a "reward" to the shareholders.... people love 'em!

Berkshire Hathaway (Brk.A) (Warren Buffett - heard of him?) has never split their shares - ONE share is $112,325.00 PER SHARE -- how many of those are you going to buy?

I like Buffet, I have owned his Brk.B shares for over 5 years. However, it doesn't have a dividend and it is about flat split adjusted since I have owned it. I sell out of the money puts and covered calls giving me a descent yeild. However, even with my options, I would have been much better off in MCD. How do we inverse hindsight?