In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser takes a question from a Fool reader, who asks: "Whatever happened to stock splits? There was a time when stocks were always splitting."
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.
RSS Headlines
Fool UK
Comments from our Foolish Readers
Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the
Report this Comment icon found on every comment.
Report this Comment On December 06, 2013, at 3:56 PM, mazske wrote:
Jason,
I completely agree and understand all you said.
However, for small time investors, if we are interested in a stock like Google, when the share prices gets so high, over $1000, it is hard to find the money to get a share.
Case in point, my college age son. He is currently saving $50/month and every 5-6 months, he makes a small buy. He is doing quite well.
Yet, to get one share of Google, he would have to save for almost two years. And, in that amount of time, who knows what the share price would be then.
I try to make monthly stock buys. I may have $300-$350 for each buy.
So, for me to save to get one share of Google, I would have to save for three or more months.
I do own shares in Google, but would like to pick up more over time. Yet, due to the high price, I may not.
Thanks for the video.
mazske
Report this Comment On December 06, 2013, at 7:03 PM, Kimmersrenee wrote:
I personally like to see one of my blue chip stocks split. There is a practical reason for this with dividend stocks. When a dividend stock splits, and instead of 1 stock I now have 2, and they raise their dividend I get more dividend . So for me and my long held dividend stocks it ls like getting a raise on top of a raise if they increase their dividend.
Report this Comment On December 12, 2013, at 8:56 AM, LexSC wrote:
Stock splits do not add value to the stock, but they can can provide greater opportunities for people to sell covered calls. Some of the higher priced stocks do not have mini's (contracts for 10 shares as opposed to 100 shares).
Add your comment.