market cap

Noi tieng viet time.....

HUH???

The greatest thing in the world is the greatest thing in the world. HUH??

La Um som qua di...... Tuc thiet ma.

Tieu Nu tuc lam, Dai Thanh Gia oi.

Nguoi nao giong giong theo long ma di . Theo long ma di. Theo di ma long.

I heard u clearly.

Nam mo a nhi da phat. Phat phap vo bien.

Noi chuyen ma khong nguoi nao nghe het. sap muoi mot gioi roi, ma khong ai boi com cho toi het.

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Ever wondered why a stock goes up on announcing a stock split?

This phenomenon continuously amazes me. The purported explanation is that as a stock becomes 'cheaper' it has a greater upside potential. This is pure financial chicanery!

Remember what matters is the market capitalization of a company. So for e.g. Intel has 200 shares trading at 100. Market Cap is 200*100 = 20,000. Now it announces a 2:1 stock split - so it has 400 shares. The theoretical trading price for Intel should be 100/2 or 50. This is because unless the fundamentals for the company change the market cap should stay the same, i.e. 20,000.

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