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Hm.. You still own 1% of Apple right? Otherwise, what happens at the end of 20 years when a 100 investors each buy 1%?
by moccachino 9y ago
Hm.. You still own 1% of Apple right?
Otherwise, what happens at the end of 20 years when a 100 investors each buy 1%?
- Retric 9y agoApple can only buy stock when someone sells it. Consider there are 100 shares and you own 1 of them. Now Apple buys 1 share from someone that sold it, that means there are 99 shares and you own 1 of them. Repeat until Apple buys 50 shares, there are 50 outstanding and you own 1 share. Now, apple does a 1:2 split so there are 100 outstanding shares and you own 2 of them post split. It's true that the people selling stocks have to pay capital gains. However, they always need to do that when selling shares to anyone.