Equity Investments: Hot Stocks
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Activity:
50 views;
last activity : 07 06 2010 20:18:09 +0000
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Represent the Bright Future Of The Company
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Change in Stock price
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To Attract Small and Individual Investors
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Increase the share holder base
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More liquidity of stock, decrease in price per share and there by increase in affordibility of share for investor and there by increase in demand and thereby increase in price of share from mid to long term
Stock split will increase the stock price, split shall decrease the stock price to half and this decrease in stock price will bring about a boost in the demand for the stock, which shall drive the prices high. Representing the bright future of the company.
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It effects the stock price When company do stock split the stock price is affected and it will be valued at half the price as before i.e when the number of stocks outstanding will increase, the stock price will reduce. What do you think ? |
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Mr.Das I do think there will be a change in the stock price, the price will decrease but the split can result in stock price increase also. It is because when the stocks become affordable to small investors, they will buy more and this will increase the demand and which will result in price increase.
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One of the important reason why company do stock split is to keep the price low so as to attract small and individual investors. Because after 2 for 1 stock split the price of the stock reduces to the half of its value. Individual investors will be able to afford in buying what he/she was not to buy earlier.
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Many investor welcomes stock split.As the investors believes that they get more for their money.
Well another advantage of stock split is that it might also signal that a company is experiencing healthy growth and thats the reason for stock price to keeps riding and stock split is done...
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By attracting more and more investors the share holder base will become wider. Wide shareholder base will help and make sure that the small groups of shareholders don't have control over the business. With more shareholders the company's support will be broader.
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just becuse the market is doing really well at the moment everyone are coming out with IPO's to expand their businesses across the country, and though it is a good option i would wait for some more time till the market rally what we are seeing... |
This is not the complete news. There is a catch in it. And that is the aspiring buyers are not allowed to sell the share for three years. And after hearing this the list of buyers has got shortened. |
I am sorry to say this but I think in the exact opposite direction, the govt. is being the biggest shareholder in these companies and the profit margin of these companies is also negative every year. |