Which has virtually zero impact on anything at all whatsoever other than making it affordable to retail investors, which also has zero impact on anything other than black swan meme stocks
There’s also a non-trivial amount of stock price that’s based on “psychologically round” numbers. If a stock is 399 some traders may see it as a deal and buy simply because it’s below the “round” number of $400. Splitting changes the relative landscape of what numbers are “round”.
I bet it is literally phonetically easier for traders on the NYSE floor to shout round number rather than "Selling amazon at 978.23!!!" At some point the number of significant figures slows down your transaction speed, as a human, that is.
That's not true. It has an impact on options re-pricing after the split occurs. I don't pretend to understand it, so don't ask for more details, but options traders love splits, apparently (at least the traders I know).
I trade options and I love it when share price is above $1000.
The flurry of stock splits for major tech shares is just a way for institutions to offload their stock to retail investors.
JPM and their clown gang has been screaming "buy the dip" non stop since Jan.
> JPM and their clown gang has been screaming "buy the dip" non stop since Jan.
Well... long-term (=20-30 years) "buying the dip" is the one true way to make outlandish profits (other than gambling with options), the thing is you have to be financially able and psychologically strong enough to not sell on the inevitable downturns - and you need to spread your purchases.
Retail investors should stay the fuck out of single stocks or narrow-scope indices, at least with money they cannot afford to lose.
there is absolutely no way in hell SHOP is going back to $1300. Or even COIN or any of the other tech will return to their heights.
AMZN, GOOG might return probably in other 10 years.
There is the saying "don't catch a falling knife" for a reason. It's illogical to plough money into stock market when QT has hit, inflation is soaring and a recession is all but guaranteed.
Not so on refreshers for lower level employees. $70k-$100k over 4 years amounts to barely one share a month at current GOOG prices. Add in tax withholding and it’s about half a share. So they generally vest quarterly instead of monthly. After this split they can vest monthly.
