Stock Market is the bottom in?

[b116757]

70% say a shooting civil war is justified? I have a hard time believing that.

I’m thinking he was referring to Brandon’s poll numbers but that’s just a guess. I’ve not seen any polling to support civil war just yet.

 

[chummer]

70% say a shooting civil war is justified? I have a hard time believing that.

If 70% thought a civil war was justified we would be having a civil war. There will be no civil war until we are much further down the socialism hole. Everyone has to much to loose now. Keep printing money(inflation), take away freedoms, call half the country racist, leave border wide open, rig elections, and we will get there.

 

[yoderjac]

Agree 100%. Business and the investment community love stability. But divided government means nothing gets done, since each side is trenched-in. Things like our outdated power grid, lack of cybersecurity, rotting bridges and water systems, crumbling roads, sewer systems leaking .......... all suffer and get more & more expensive as the years go by. I agree with your point that the center-lefts and center-rights have to carry the day for anything to get done. The "centers" aren't so far apart when asked their goals & priorities.

I would not say nothing gets done. I would say that the status quo prevails until enough legislators from both sides decided to compromise, find middle ground, and pass something that has broad acceptance. I will admit that brinksmanship on both sides may cause little to get done for long periods, but that generally means stability. We will always have far left and far right folks. They are the minority, but with gerrymandering, they have oversized influence on the parties. When districts are very safe, legislators are threatened from the right or left (respectively) primary runs.

 

[BuckSutherland]

I was happy on Friday, for the earnings calls of Amazon and Snapchat on Thursday. Snap had their first ever quarterly profit. Think Amazon could really use a stock split like Google last week. The companies missing on earnings have been getting beat down pretty good.

 

[yoderjac]

I was happy on Friday, for the earnings calls of Amazon and Snapchat on Thursday. Snap had their first ever quarterly profit. Think Amazon could really use a stock split like Google last week. The companies missing on earnings have been getting beat down pretty good.

So what is the benefit of a stock split these days. Years ago, when stocks were sold in even lots and commissions were high, a stop split opened up sales to smaller investors increasing the market, and thus demand, for the stock resulting in price appreciation. In todays market, with low cost trading and small investors being able to buy fractional shares, I'm not sure how much stock holder benefit there is to a stock split.

Any inights?

 

[SD51555]

So what is the benefit of a stock split these days. Years ago, when stocks were sold in even lots and commissions were high, a stop split opened up sales to smaller investors increasing the market, and thus demand, for the stock resulting in price appreciation. In todays market, with low cost trading and small investors being able to buy fractional shares, I'm not sure how much stock holder benefit there is to a stock split.

Any inights?

Makes options trading more affordable. An options contract is for 100 shares. If you wanna write options on Amazon, you need to have $316,000 to put your elbows on the big boys table. If a stock is $50-$100, it's a little easier to get in the game.

 

[BuckSutherland]

Not every trading platform is set up for fractional share trading. Split the $3,000 share 20 to 1 and you get a lot more available buyers. Stock splits done most recently by Apple and Tesla really brought in the buying. News of a split really helped Google rally this week.

 

[yoderjac]

Makes options trading more affordable. An options contract is for 100 shares. If you wanna write options on Amazon, you need to have $316,000 to put your elbows on the big boys table. If a stock is $50-$100, it's a little easier to get in the game.

That makes sense. I hadn't considered that options were still in hundreds.

 

[Buckly]

Stock splits are great also when a company pays a dividend. . Twice the shares and twice the dividend, not to mention the momentum pushes the stock back up in price. Sometimes anyways. I was fortunate to go through a couple splits with Cummins. It’s worked out very well.

 

[yoderjac]

Stock splits are great also when a company pays a dividend. . Twice the shares and twice the dividend, not to mention the momentum pushes the stock back up in price. Sometimes anyways. I was fortunate to go through a couple splits with Cummins. It’s worked out very well.

Isn't the dividend usually cut to match the split? Of course sometimes the dividend happens to be increased a little at the same time a split occurs.

 

[Buckly]

There is some timing involved there as to the dividend payout. Usually the dividend payout will be the same just split between the shares but, the bottom line is you have twice as many shares as you did have or what ever the split was. As the company is now a hot commodity there’s good reason for an increase in share price and dividend Even if the stock price quits growing the dividend can increase and you have twice as many shares to collect on. Just a way to grow a company faster by increasing interest and those investors deserve a benefit in higher dividends. Sometimes. LOL.

 

[bwoods11]

I was a big advocate for Apple to split, and pay a dividend. Many investors were against it. It’s really been a big plus for the stock.

 

[Telemark]

There won't be a civil war in the US.

 

[yoderjac]

There is some timing involved there as to the dividend payout. Usually the dividend payout will be the same just split between the shares but, the bottom line is you have twice as many shares as you did have or what ever the split was. As the company is now a hot commodity there’s good reason for an increase in share price and dividend Even if the stock price quits growing the dividend can increase and you have twice as many shares to collect on. Just a way to grow a company faster by increasing interest and those investors deserve a benefit in higher dividends. Sometimes. LOL.

Continuing with your 2 for 1 example...

BS makes a legitimate point in his post about options contract still being sold in 100 lots as stocks used to be. My counter to that would be that you don't really find that most options are bought and sold by small time investors that are liquidity limited. Options are generally bought and sold by more sophisticated investors that have sufficient investment funds where the option price of 100 shares is generally not a limiting factor. I doubt you find a vast number of investors thinking "I really want to buy an option on XXX but I can afford it...If they only sold 50 share option contracts, I'd buy it." But still, BS is right that there would be some positive impact from a slightly larger options market. Of course a more active options market and accelerate rise in good times but also accelerate fall in bad times. But generally, I would concede that it has some positive impact. As far as the impact on dividends, I see it as a zero net effect.

My point is that, in the old days, the impact of a stock split was much greater opening stock purchases up to a much larger market than it does today. I see it a a much less positive thing a company can do for the investor than a stock buy-back.

Thanks,

Jack

 

[SD51555]

Continuing with your 2 for 1 example...

BS makes a legitimate point in his post about options contract still being sold in 100 lots as stocks used to be. My counter to that would be that you don't really find that most options are bought and sold by small time investors that are liquidity limited. Options are generally bought and sold by more sophisticated investors that have sufficient investment funds where the option price of 100 shares is generally not a limiting factor. I doubt you find a vast number of investors thinking "I really want to buy an option on XXX but I can afford it...If they only sold 50 share option contracts, I'd buy it." But still, BS is right that there would be some positive impact from a slightly larger options market. Of course a more active options market and accelerate rise in good times but also accelerate fall in bad times. But generally, I would concede that it has some positive impact. As far as the impact on dividends, I see it as a zero net effect.

My point is that, in the old days, the impact of a stock split was much greater opening stock purchases up to a much larger market than it does today. I see it a a much less positive thing a company can do for the investor than a stock buy-back.

Thanks,

Jack

Anyone can buy options. A $5 bill can buy you an option. It's selling options that requires someone to own a 100 share block, or have the cash to purchase a 100 share block (for selling puts).

 

[yoderjac]

Anyone can buy options. A $5 bill can buy you an option. It's selling options that requires someone to own a 100 share block, or have the cash to purchase a 100 share block (for selling puts).

Yes, that is correct.

 

[SD51555]

Whoever bought the TSN call I sold, is doing backflips today.

 

[S.T.Fanatic]

I haven't checked this page since early in the day on Friday. Wow, just wow.

 

[SD51555]

 

[SD51555]