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Stock splits.

April 28, 2014

Apple stocks split 7:1 is  next month. Go to my book The psychology of Investing (Page 103) and learn what it means psychologically. Overall, it’s the same, no gain no loss in the short run, or a small loss, but in the long run it’s a gain, and psychologically it is happy times all the time. You feel good when you have 10,000 shares of AAPL and overnight you have 70,000 shares. Your dividend is almost enough to live on, as is not the case with most other dividends. Share split is interesting. When Google had a share split 2:1 last year it was for Page and Brin to regain control of the company and feel free to invest in – balloons (see my previous blog analysis). Apple’s 7:1 share split is to allow Apple to join the Dow Jones index of 30 representative companies without dominating the other 29 with mega shares. Good luck Apple, Steve Jobs would have approve the move!

One Comment leave one →
  1. July 2, 2014 3:57 pm

    Wow, this paragraph is fastidious, my sister is analyzing these things,
    therefore I am going to let know her.

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