Stock split

Stocks A to Z
1

I am a fairly inexperienced investor. What would the proposed 10-1 split mean for a small time (30 shares) but long-term investor?

2

Buy a pizza and cut it up into 10 slices. What do you have?

Just one pizza but easier to share with friends and family.

Same with shares, you still have the same value but there is a bit more liquidity in the market, a bit more trading activity.

Option trading comes to mind. One option contract is for 100 shares. To sell one covered call you need 100 shares which at $360 is $36,000. Can’t do it with a small portfolio but after a 10 for 1 split to sell one covered call you only need $3,600.

Denny Schlesinger

3

WIthout buying or selling any of my shares, will the proposed 10-1 split benefit me over the long-term?

4

WIthout buying or selling any of my shares, will the proposed 10-1 split benefit me over the long-term?

No. It just makes trading easier.

Denny Schlesinger

5

Thanks.