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Stock Split

Started by Cicero [1294600] on in Questions & Answers.

3 replies · 140 views · thread synced · 4 days ago · View on torn.com
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Cicero [1294600]
Just curious as stock prices are expected to increase by an average of 10% per year will we see a stock split ever be implemented to reduce the price back down so not to deter some investors/newer players from buying certain stocks in the years to come instead of eventual crash in the price to give people a opportunity to buy in?


(Ex: Lets say Mc Smoogle is trading at a price of 1k sometime in the future. It is reduced to trading at 500 due to a stock split, You were holding 1m shares at the time of the split, now you have 2m shares due to the stock split.)
Orb [2434389]
I don't think so, since somehow stocks are copying real life trades , right? So, i think it's not 100% that it will climb every year, maybe it will climb , but eventually it can fall aswell, so there won't be a need for Stock Split.

But i like your idea.
Taxxon [882264]
I think the real-life stocks affect alot of input factors but Ched himself stated that stocks would increase on average of 10% per year, some being extremely volatile and others not.

Based on how stocks where before I doubt there will ever 'split'. I bought PRN back when it was $40/Share. It got up to $1000/Share because stocks where finite. Infinite stocks should keep the price down; I don't expect to see the climb/fall that PRN/Yazoo did in 2.0 repeated (I almost think thats why system was changed)