Is a stock split good or bad for investors?
Вставка
- Опубліковано 27 тра 2024
- In this video, we will discuss stock splits and if they are good or bad for investors. Here are some of the questions we will cover:
1. What is a stock split?
2. What is the difference between a forward and a reverse stock split?
3. Is a stock split good or bad for investors?
4. How does a stock split affect my cost basis?
5. How does a stock split affect my taxes?
Read Full Article:
www.acapam.com/blog/whats-a-s...
Subscribe to ACap UA-cam Channel:
ua-cam.com/users/Acapamfeat...
Schedule a Consultation:
www.acapam.com/contact/
Financial Advisor in Los Angeles, CA
CPA in Los Angeles, CA
12031 Ventura Blvd., Suite 1
Studio City, California 91604
(818) 272-8511
hello@acapam.com
#stockplit #CPA #CFP #applestocksplit #costbasis
DISCLAIMER: THIS VIDEO IS FOR INFORMATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSTRUED AS TAX, FINANCIAL, OR LEGAL ADVICE. EVERY PERSON’S SITUATION IS DIFFERENT AND YOU SHOULD CONSULT WITH YOUR OWN FINANCIAL AND TAX ADVISOR FOR ADVICE SPECIFIC TO YOUR SITUATION. COMMENTS ARE NOT REVIEWED
ACap will not respond to comments seeking tax or financial advice. Please consult a CPA or CFP who is familiar with your individual circumstances.
A good example of stock splitting to keep stocks affordable would be to just look at a company, like APPL. If they never did any stock splits, each share of apple would be over $500,000.
Thank you. So true. That’s exactly the reason why companies do stock splits so that more people can buy their stock.
Good video ! Super informative
Thank you very much!
@Acap. So are you saying stock split is good for tax purpuposes?
Hi, sorry Im new...... How do we know when looking at companies that they had a stock split? Meaning, if the price is $50 and I purchase $50 worth and the company had a 4 for 1 stock split, how do I know I have to purchase $200 worth to get 1 share?
Does that just mean investors pay more capital gains on stocks that split?
I have question, is positive stock split good for the current shareholders?
Rrr lii, thank you for your comment. I assume you are referring to a forward stock split. If so, it is neither good nor bad for current shareholders. As mentioned in the video, a stock split does not change the total value of the company, it just divides the company into smaller pieces.
@@ACapReCap I had 75 shares with Aurora cannabis (acb) and their cost split left me with 6 shares ..... I purchased the shares for $6.66 they are going for eight or nine dollars a share and I still lost $450 and I still don’t get it LOL I’m just gonna take it as I’m screwed when it comes to that deal, long story short I know nothing of trading stocks, and fill lost even watching these videos
@@commonsense8800 right your shares were $6.66 when you purchased... but the split caused your 75 shares to become 6 so now each one is technically supposed to be $83 or so. You’ll have to wait until market price reaches that level (someone willing to buy at $83/share) for you to make a profit upon selling. But you’re currently only getting $8-9 for each so that may take a while. Your stocks have been diluted in regards to resale. Your scenario exemplifies the reverse stock split so no bueno as stated in the video it’s a warning sign... you’ll want the stock to recoup but the chance of that happening to the level you’ll be happy with is slim... for others just entering though... maybe buy just in case it does recover?? I mean it is cannabis - hot topic lately. But probably don’t buy 😬🤷🏾♀️ although risk takers get the cheese. Ok idk now...stocks are a funny thing
Question ... I know it depends on the company but in a general sense , after a forward stock split I now have more shares . Does the price for one share tend to slowly rise back up ? Because then I would own more shares and be getting a better rate ????
No, the performance of stock price is completely independent of the split. The stock price can either rise or fall.
Cost per share $25 , you said $60&$120
He failed to mention what happens post split for example
Say I have 100 shares at $50 a share that’s $5000 total I’m investing ok now for example a company does 5-1 split now I have 500 shares and still 5000 grand invested and price goes down obviously what happens when the stock goes to $300 per share for example do I calculate 500 shares times $300 bucks and cash out $150,000 ?
Yes, you are correct. In your example, the price post 5:1 split would be $10/share so you would have 500 shares @ $10/share = $5,000 (still your original investment). If the stock goes to $300 as you suggested, your total investment is now worth $150,000 (500 shares @ $300/share).
@@ACapReCap thank you
Tesla (TSLA) just announced a 5:1 stock split today. This video will also cover how Tesla's stock split will impact your cost basis and overall market value.