Hi, just had to add a comment to this discussion of buying before vs. after a split.Unless your broker charges more for an odd-lot* (less than 100 shares), it really makes no difference whether you buy 50 shares at $80 today, or 100 shares at $40 tomorrow.The thing to focus on is not number of shares, nor the number of points, but *percentage* of growth.Let's say you have $4000 to invest. In the scenario above, if you buy 50 shares of an eighty-dollar stock, and it goes up 8 points to $88, you have a gain of 10%.(50shares*$88=$4400)On the other hand, if it splits two-for-one at $80, and then goes up 4 pts after the split, your gain is still 10%. (100shares*$44=$4400)Too often new investors get side-tracked by number of shares and number of points, when the only thing that matters is how much your original investment grows.*by the way, if your broker does charge more for odd-lots, get a new broker!Jeanie :)
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Rat