ABW Stock Exchange: All Things Investing
- Thread starter Inori
- Start date
Thought there was a cut off date before you could qualify to get in on the stock split. Is that true or what
Not at all. Apple is doing a 4 to 1 forward stock split. All that means is on the given date whatever the current price for one share is will be split into four shares.
So let's say the split was today and Apple is $476 for one share. If u own one share during the split u go from 1 share @ $476 to 4 shares @ $119 each (476÷4).
U still own the same amount but more shares. But now that u have 4 shares instead of one, whatever growth comes after the split is multiplied by four instead of one.
So if u buy 2 shares today, when the stock split happens it'll turn into 8 shares. So on n so forth.
Also if $476 is too high for u to buy right now u can wait til the stock splits and get it for cheaper for one share. Which is why they're doing the split to begin with, to cheapen the price and get more investors
Idk if I'm explaining this well lol.
Yea you explained it right, but let's say the date is suppose to split is the 22nd "for the sake of the convo" and I buy today on the 21st will I still qualify for that split?
Yea.
Since the split is happening Monday (24th) u have til today before market closes to buy before the split.
Better to buy now or after the split
RodyRod
Active Member
That's the million dollar question tbh
Apple's a juggernaut that's not going anywhere so its a good buy no matter what. I bought a few shares before the split just to get in but I saved some money to jump in after the split just in case the price went down after the split. I think its 5 in one hand, 7 in another. You can't go wrong with either strategy.
I probably just grab a few shares each month and see what happens. If I can get 25-50 shares I think I'll be straight...
That's what I've been wondering.
My guess is when the split drops the price of one share it gives a chance for people to buy up in bulk so it'll continue to rise.
And even if it doesn't jump short term you'll see gains long term at worst.
Next time a strong company announces a forward stock split the sooner u buy the better especially in a bull market. Bc ever since they announced it q few weeks ago it went up over 20%.
dasmooth1
Active Member
I believe Apple will keep growing (albeit more slowly after the split). With the incoming 5G cycle and tens of millions of users around the world due for an upgrade at the same time they will still likely be very profitable from their iphones. Add to that their profits from services are increasing year on year and they have the wearables market on lock with the airpods and watch I dont see that train slowing down anytime soon.
I pulled the trigger got a couple shares
I'll keep updating but come Monday those 2 shares will turn into 8 just gotta see how it performs
I'll keep updating but come Monday those 2 shares will turn into 8 just gotta see how it performs
me and you in the same boat bought some this morning. just got 2 of em may get 1 more come Monday
Can someone explain that last sentence for me ?
Inori
NAWF
I was confused by this as well.. cuz I had read the split was happening on August 31st... but you mentioned today being one of the last days to get in before the split and even this says the shares will be distributed at the close on Monday.
I'm not tripping if it takes another week bc I believe it's gonna keep growing. The sooner before the split the better.
If I would have bought a couple shares the day they announced the split (July 31) I would be up like $250 in three weeks for a share $75 cheaper at the time
I don't see that share price dropping anytime soon unless the whole market is coming down with it and if that happens I'm buying more
If I would have bought a couple shares the day they announced the split (July 31) I would be up like $250 in three weeks for a share $75 cheaper at the time
I don't see that share price dropping anytime soon unless the whole market is coming down with it and if that happens I'm buying more
AZTG
OG
Real talk this is how you get rich.
This is how microsofts been making mfers millionaires since the 70s.
You buy these 2 shares, they turn to 8 in Monday. You keep adding on, and in 4 years say you got 50 shares, and they split again. Now you got 200 shares. You sit on them, and in 5 years you got like 400 shares, then it splits again and you got 2000. And then it gets back to $500 a piece and you sell 2000×500 and get a million dollars.
AZTG
OG
I just read the last few posts. The split itself does nothing. So getting it before the split, or after the split doesnt matter.
The important thing here is to find a blue chip company that grows like crazy and has a tendency to split and keep the prices of its shares down.
The reason thats important is because in Apples case, it makes it easy to keep buying shares. Thats the important point. To keep building volume.
For example, Amazon might grow faster than apple, but how many of us can afford to buy shares of amazon at $3200?
If a person can afford to buy only 2k stock a year, they can get like 10 shares of apple a year, but wait 2 years to buy 1 share of amazon.
In this case, even if apple increases twice as fast as apple, investing in apple will make you more money.
Reason why is compounding interest. In the 2 years it took the person to buy 1 amazon stock, the person that bought apple was able to invest and get returns. And now the person that bought amazon will only get returns on that 1 stock while waiting 2 years to buy more, but the person that bought apple stock will keep buying more and not only get returns on their new purchases, but also get returns on their returns from the purchases made the first 2 years.
So in the long run, the person buying apple stock will make a ton more money even if apple grows at 10% and amazon grows at 20%.
Thats why its super important to find blue chip stocks that will keep growing and have a patern of splitting their stock to make it easy for you to buy.
This is why people say microsoft makes people millionaires every 20 years. They say that about apple and coke too. Idk bout coke continuing that pattern in 2020, but aapl and msft will.
TLDR: it doesnt matter if you buy before or after, just keep buying once it does, and 3 splits later you will be rich as fuck.
@Sion verify this for the people bruh. I dont got your credebility
The important thing here is to find a blue chip company that grows like crazy and has a tendency to split and keep the prices of its shares down.
The reason thats important is because in Apples case, it makes it easy to keep buying shares. Thats the important point. To keep building volume.
For example, Amazon might grow faster than apple, but how many of us can afford to buy shares of amazon at $3200?
If a person can afford to buy only 2k stock a year, they can get like 10 shares of apple a year, but wait 2 years to buy 1 share of amazon.
In this case, even if apple increases twice as fast as apple, investing in apple will make you more money.
Reason why is compounding interest. In the 2 years it took the person to buy 1 amazon stock, the person that bought apple was able to invest and get returns. And now the person that bought amazon will only get returns on that 1 stock while waiting 2 years to buy more, but the person that bought apple stock will keep buying more and not only get returns on their new purchases, but also get returns on their returns from the purchases made the first 2 years.
So in the long run, the person buying apple stock will make a ton more money even if apple grows at 10% and amazon grows at 20%.
Thats why its super important to find blue chip stocks that will keep growing and have a patern of splitting their stock to make it easy for you to buy.
This is why people say microsoft makes people millionaires every 20 years. They say that about apple and coke too. Idk bout coke continuing that pattern in 2020, but aapl and msft will.
TLDR: it doesnt matter if you buy before or after, just keep buying once it does, and 3 splits later you will be rich as fuck.
@Sion verify this for the people bruh. I dont got your credebility
I'm a rookie I'm only working on the assumption that when people know a strong company is gonna forward split it's good news and the share price rises.
And keeps rising until that split (this isn't apples first split). Then since the price of one share drops, more people buy, thus increasing the value of your shares.
But you're right, anytime u can buy into a company like apple is the right time regardless of a split. People who buy in after the split gonna eat regardless.