3 ms·

> Prices below $5 often indicate that a company is in trouble. Really? What are you basing that on?

• nathank 11y ago
  Just read the comments below before posting again.
  • imtringued 11y ago
    Which comments? You do realise that the order of comments is influenced by votes and how recentley they were created? Either give us a proper explanation or a link to the comment you are refering to. Stock splits are only about convenience. Imagine if all we had are $100 bills. Buying groceries will be quite a hassle. The government then decides to do a split and let everyone exchange their $100 bills with 10 $10 bills. Everyone still has the same amount of cash but it's now easier for the average consumer to buy their groceries. How would the existence of a $10 bill mean the economy is in trouble?
    • brianwawok 11y ago
      This is a too simple analogy. Some exchanges wont list a stock if it's under $1. Some brokers wont let you short under $5. If grocery stores took no bill smaller than $1 , would you really want to cash your $10 bill into pennies?