4 ms·
A 20:1 stock split as well.
by owlninja 5y ago
A 20:1 stock split as well.
- subsubzero 5y agoThat will price shares back to their IPO level in 2004, $130/140 a share.
- xyzzyz 5y agoDon’t forget there already was one 2:1 stock split in 2014 or so.
- cobookman 5y agoWhich makes options contracts cheaper, and it cheaper for retail to open shorts against them.
- anonporridge 5y agoAlso cheaper to open longs.
- panarky 5y agoWho cares if options contracts are expensive, you just trade fewer of them.
- ppg677 5y agoI wonder if there is a psychological effect that could push more stock growth?
- throwaway287391 5y agoIt's not only psychological -- for example, a lot of brokerages don't offer fractional shares, so a split allows some retail investors to invest who couldn't afford to before. (Although that almost certainly has a smaller effect than the options contracts etc mentioned in sibling threads.)
- ra7 5y agoGoing by examples in the last year (AAPL and TSLA), it seems very likely.
- bduerst 5y agoIncreased liquidity. Also option trading is usually in 100 share units, meaning retail investors can now afford more options (e.g. $15,000 vs $300,000 a unit).
- kshacker 5y agoAnecdote warning: This is one reason I have not been able to buy/sell google options. (I did around Brexit when google was 650 or so, but not since). Even a single contract is a massive risk for a layman portfolio like mine. 1/20 will imply I will definitely attempt to trade this.
- mpalczewski 5y agoThis makes the stock price in line with other dow jones stocks, something that Apple did right before it was included in the Dow average. The Dow unlike other indices does not weight by market cap or anything like that it literally uses the stock prices.
- deleted 5y ago[deleted]