Jagmohan Singh
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curious case of stock split! (Js)

Jagmohan Singh at 12:22 PM - Dec 04, 2014 ( ) Views: 508

every icici bank share split into 5 today
from 1798, it "fell" to 361 (cmp)

no of shares became 5 times, value per share became one fifth.
market cap of the company remains same...

so why split the share?

this simple curious question led me to the article

http://www.investopedia.com/articles/01/072501.asp

in simple words, it is more of a psychological pricing tactic. instead of 1kg sugar packs, the same amount now availble in 5 packs of 200gms each!

amusing! interesting! intriguing!

but to me, it has done irreparable damage......my technical chart is damaged.....blasted......no tech analyses possible now for a long time!

A rose by any other name would smell as sweet.....sure
but a stock will blow bigger and faster like a bubble when split!!!

 

 



From: Jagmohan Singh at 12:28 PM - Dec 04, 2014( )


(caution: to an unsuspecting amateur investor, such splits can split end the life with a cardiac arrest)


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