Aight, so let me explain what a stock split is for those who are new to stocks or don’t get it. Also, I’m not some financial guru, I’m just a nigga who likes investing in shit here and there:
Say you got one $10 bill, and get it exchanged for ten $1 bills... Same amount of money, right? That’s all a stock split is. Your investment is the same, you just have it spread among more shares. This decreases the price per share.
Apple did a 4:1 split, which means if you had 10 shares, you now have 40. But the shares individually aren’t worth what they were when you bought them. You have the same amount of pizza, but different amount of slices. So you didn’t lose money, but you didn’t gain anything. Draw.
Companies will split stocks to drop the share price to attract smaller scale investors like many of us. It’s a lot less intimidating when you can own a full piece of Apple stock for $130 as opposed to $800+, or whatever the price was before hand, I didn’t catch it.
But don’t let your misunderstanding deter you from investing, I been fucking with the stock market since 2018 and I’m still learning shit as I go along. Do your homework, and keep going, you never know when you might hit a sleeper that cranks your portfolio all the way up. 🌐
You can follow @shackdeville.
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