written by reader Stock Splits

By timcoahran, August 26, 2020

Stock Splits are going to be in the news now, for a little while. I’d like to see a bit of discussion (especially from the Prof), on how they effect our arithmetic.
Obviously, they don’t change the actual value we hold in the moment (though they might cause some temporary market “excitement”). Yet, a great many of the numbers we look at in company assessments are quotients over the share price. Examples like Apple & Tesla are still going to have their ridiculous over-valuation – yet all the numbers like EPS, etc, will suddenly not show that as well.

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