We will always have dummies and blondes among us:cool: Oh and of course Sum could do a 4:1 split at $4 making their shares very cheap at $1 aye
Printable View
All correct. Perception is reality when it comes to the share market.
Typically a share split in the 3:1 to 10:1 range equates to a gain of 5%-10% in the said share's Market Cap. I have consistently seen this too many times now. Same applies in reverse for a share consolidation.
Share splits are like the old joke - "I don't think I could eat a six slice pizza, so cut it into four slices instead".
That being said, there are behavioural reasons why a split might be favoured.
But also, at the margins, there are some who might be swayed against buying small parcels of Ryman because they can't afford 500 shares at the current price, but could afford 500 shares at a 2-for-1 split price, and there might be minimum buy amounts, or inefficiences in buying small amounts with higher brokerage.
Here's a report from The Commision for Financial Literacy and Retirement Income on what may happen to incomes as people get older
Jeez never knew such a commission existed ..no doubt justify their existence and gives a few Public Policy and Economics Graduates a job
http://www.cflri.org.nz/sites/defaul...t-Dec-2013.pdf
Adviser reckons buyers of RYM for this Global Midcap index fund finishing buying today. Be int to see.