A 2-for-1 stock split is like making change for a $10 bill and receiving two $5 bills in return. The total value remains the same.
Other splits and reverse splits all work the same way.
A person that owns 25% of all the stock in a company, still owns the same percentage after a split.
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Splitting (or reverse-splitting) changes NOTHING AT ALL about the value of the shares held....NOTHING.
If you have $10,000 in $100 bills, and the bank change those hundreds into $50 bills for you, you have twice as many banknotes worth EXACTLY the same amount of money!
Splits typically happen when a corporation feels the Ask price is too high to lure new investors....it's about attracting new customers and getting on the News, nothing more....nothing less!
Stock Splitting, done by company, means dividing owned/hold stocks. I know this also counts for dividing borrowed (short sold) stocks BUT does it count for dividing the ones on the market too that are NOT owned (hold) by anyone?
In stock splitting (unless it is reverse one) number of available and/or owned share increases but price of each share decreases. It is well known that higher reputation and more valuable decision in company have person with more stocks owned (bigger ownership of company). But after stock splitting done, does the person have for particular factor of split (e.g. 3 for 1 = 3/1 = factor 3) bigger or more valuable decision of his or her opinions that effect company well-being (e.g. sacking employers, signing important contracts,...)? From aspect of number of stocks, the answer should be Yes but the reason why I am asking is because the price at the same time reduces. So there is high possibility that reputation of the person (value of his or her decisions) stays the same just because of price reduction, even if he or she owns more stocks (unless reverse split). So the question is: is reputation (importance of decisions) the same or higher? Same question for reverse split: is reputation reduced because of less owned stocks (factor of split below 1) or equal because price increases? *PLEASE* Don't overlook my previous question. SAME i am asking for REVERSE splitting if reputation
