I don't see any need or merit in a Share split unless its cracked $10.00. My $0.02
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
dear axe..."should" ...me thinks that would only occur if there is fundamental change of thought/expectation/valuation et al of all retirement entities...Logically with all 3 major players ...the on going "story" is perfect...but therein lies the problem...seldom does outcome of any story become "perfect"...just saying after 30 + years in the MKT.
I've never understood our Kiwi enthusiasm to see a share split for a successful company. Yes, I know the "more marketable" argument but a high SP hasn't hindered the likes of CBA, Blackmores, CSL, Macquarie Bank etc. Does being Aussie companies make a difference? Apple?
I've never understood our Kiwi enthusiasm to see a share split for a successful company. Yes, I know the "more marketable" argument but a high SP hasn't hindered the likes of CBA, Blackmores, CSL, Macquarie Bank etc. Does being Aussie companies make a difference? Apple?
It is like a bonus issue. Makes no actual difference to the value of the company but people like the process. The opposite happens on consolidation of shares. Weird behaviour.
777 Totally agree...weird behaviour indeed...its my experience that folk would rather buy a $1 share than a $5 share...because its more acceptable/affordable...and it sounds more impressive to say I have 5000 of something than 1000....come on guys you know this...it aint rocket science...this issue I believe has held back many investors from buying....
777 Totally agree...weird behaviour indeed...its my experience that folk would rather buy a $1 share than a $5 share...because its more acceptable/affordable...and it sounds more impressive to say I have 5000 of something than 1000....come on guys you know this...it aint rocket science...this issue I believe has held back many investors from buying....
I agree too.. even though I think it's weird and shouldn't really happen in theory.
My experience is about a permanent 10% increase in Market Cap (equals a 10% increase in adjusted SP) following a 4:1 to 10:1 share split. Visa versa, a 10% drop (or even more) for a comparable share consolidation.
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