5 ms·
I'm curious, but how would a company arrive at the number '7'? Is it somewhat arbitrary? Any reason you'd want it to be e.g. prime?
by Osmium 13y ago
I'm curious, but how would a company arrive at the number '7'? Is it somewhat arbitrary? Any reason you'd want it to be e.g. prime?
- ninkendo 13y agoI'm sure they had a target price in mind (something that would be low enough to attract investment but high enough to not seem cheap) and just split the appropriate amount to get that number.
- MichaelGG 13y agoThat's just so... wrong. I know some investors are going off things like that but doesn't it bother anyone that such an important part of finance depends on people looking at numbers in a totally irrational way? Like, simply not even doing the math. Even on investment sites, I've seen people say "it's crazy that foo is at $20 but bar is at $50". It's as dumb as someone saying they prefer Zimbabwe Dollars cause it's easier to become a trillionaire.
- speeder 13y agoWhen I heard the number in my head it was obvious because I remember the price being 700 (thus 700/7 = 100) now I checked, and it is currently 500something, but I think their peak was near 700, what I can guess from the real information, and from my "remembered" information (that is kinda important anyway, prices changes tend to be a lot about psychology) I guess that they are aiming for a 100 USD share price in some medium term.