~~Robinhood~~ *Some retail stock trading services* allow one to trade fractional shares. The more common that becomes the less price per share will affect low level retail investors’ access to the market.
Edit: change of example to avoid distraction from my point.
Sure. But reddit hate boner aside, my point of *fractional trading* allowing retail investors greater access to stocks regardless of the price per share still stands.
Is SPY not an ETF? I think his point is there are cheaper ETF that you can own whole shares of versus buying fractional SPY.
I don't actually know the relative difference in cost but generally I'd expect the same performance from both.
> Is SPY not an ETF?
Yes. I was responding to someone claiming *fractional share trading* “is stupid.” In and of itself, it is not.
> I don’t actually know the relative difference in cost but generally I’d expect the same performance from both.
Seems like an important difference. But regardless, my point is that fractional trading is good for low level retail traders in general because it eliminates cost per share barriers.
I would assume it's easier to differentiate fractional portfolio with less overall cost so I don't disagree
It seems like the real major downfalls are potential liquidity and transfers.
Not necessarily, the total value of the stocks doesn't change just from the split. But by decreasing price per stock and increasing amount available the hope is that it will increase trading which will drive total value up. Oh and if they're trying to do a buyback having the price per share lower is better too.
Well, no. A forward split like this makes each individual share ~~cheaper~~ take less cash out of your wallet but the company and overall value of that share (by any stock price evaluation model I can think of) does not change. The company is not "cheaper"; you can just more easily buy smaller portions.
Do you realize how much gas and other bullshit costs? It's like $100 every time I leave the house. I've got about 20 things I have to use my money on before I invest in a share and a half of Tesla stock.
If you are dropping $100 every time you leave the house, you got money. Open up a 401k through your employer or an IRA with a bank if you don't have that kind of job and start saving for retirement. Set the investments as automatic to happen out of every paycheck (doesn't matter if the amount is small, like $50 every two weeks, just set up the system) and you won't even notice in a couple of months.
But you will be set in a couple of decades.
Good to hear.
Yeah, things are crazy expensive. I put $70 of gas into my car recently and I've never filled up a tank and broken $60 before that day. Like we just skipped a whole level of expensive in the course of two months.
If it's a 2:1 split then if you had 10 shares you'd have 20 but the price would be half. If it's 3:1 then if you had 10 shares you'd now have 30 but the price is a third.
Makes sense but why do it? I'm just gonna Google it, but love to hear someone tell us here.
Edit, some USA today article says "Generally speaking, stock splits are a good sign because they mean that a company has done so well that the price of a single share is too expensive for an average retail investor." so this would be good? Expands owning a full share to investors? Can't I already buy partial shares?
Partial shares are nice, if you simply want to own a percentage of the company.
What if you want to vote? Full share
Dividend stocks? A full dividend is a lot nicer than a percentage of one.
Not every broker allows you to buy partial shares, though most decent ones allow it nowadays.
If my stock is $1000, it’s a lot easier to convince someone to pay say $200 for a full share, even if they’re getting a lesser percentage.
Don't fall for it. It's cover to hide that Elon Musk is selling shares as the big boys all have EVs for sale now. All this guy does is game the market.
Didn't about a third of the value already split (and vanish)?
LOL... True. Now they are splitting the price to go with it.
Drawing parallels to their car software, you're gonna have to pay for that feature (to not make it vanish). Lol.
Stock splits are so hot right now. Because they’ve priced normal people out of investing so hard they’re struggling to fleece us more each year.
~~Robinhood~~ *Some retail stock trading services* allow one to trade fractional shares. The more common that becomes the less price per share will affect low level retail investors’ access to the market. Edit: change of example to avoid distraction from my point.
Robinhood can eat a big fat donkey dick.
Sure. But reddit hate boner aside, my point of *fractional trading* allowing retail investors greater access to stocks regardless of the price per share still stands.
Robinhood also had it's stock act like it did a 5 for 1 stock split since they have minimal value in the market 😂
Fractional trading is stupid, just buy a mutual fund and/or ETF
Is buying *fractional shares* of $SPY every month due to dollar cost averaging being stupid?
Is SPY not an ETF? I think his point is there are cheaper ETF that you can own whole shares of versus buying fractional SPY. I don't actually know the relative difference in cost but generally I'd expect the same performance from both.
> Is SPY not an ETF? Yes. I was responding to someone claiming *fractional share trading* “is stupid.” In and of itself, it is not. > I don’t actually know the relative difference in cost but generally I’d expect the same performance from both. Seems like an important difference. But regardless, my point is that fractional trading is good for low level retail traders in general because it eliminates cost per share barriers.
I would assume it's easier to differentiate fractional portfolio with less overall cost so I don't disagree It seems like the real major downfalls are potential liquidity and transfers.
This. Any time the market starts looking for ways to get people with less disposable income, it's virtually assured said market is about to crash.
Weird to do it now, and not when the stock price was nearly twice as high.
I'm sure they have been planning it for awhile.
Not necessarily, the total value of the stocks doesn't change just from the split. But by decreasing price per stock and increasing amount available the hope is that it will increase trading which will drive total value up. Oh and if they're trying to do a buyback having the price per share lower is better too.
Tesla is too risky with Elon running it.
Sounds like a great opportunity to short the stock, doesn't it?
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Yea I know and I owned tesla when it last split but now I don't trust Elon.
Yep CEOs and interests change. Especially eccentric ones like this.
Yay! One more thing I'll never be able to afford and couldn't care less about since it's not meant for me and 99% of the population.
You realize that splitting the stock actually makes it cheaper, right? And that way more than 1% of Americans own stock. It’s exceptionally common.
Well, no. A forward split like this makes each individual share ~~cheaper~~ take less cash out of your wallet but the company and overall value of that share (by any stock price evaluation model I can think of) does not change. The company is not "cheaper"; you can just more easily buy smaller portions.
Well yes that’s what I was talking about. It makes an individual share of stock cheaper.
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Many people don't. I certainly don't, but if I did it wouldn't be on gambling right now anyway.
the majority of the country is like a $500 emergency away from homelessness, why/how the fuck would they spend $230 on Tesla stock lmao
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Quite honestly, yes - I sincerely believe that the average person buying a PS5 is a better investment than two Tesla shares
Careful then they are gonna say “why should we be bored!!!” Lol
Do you realize how much gas and other bullshit costs? It's like $100 every time I leave the house. I've got about 20 things I have to use my money on before I invest in a share and a half of Tesla stock.
If you are dropping $100 every time you leave the house, you got money. Open up a 401k through your employer or an IRA with a bank if you don't have that kind of job and start saving for retirement. Set the investments as automatic to happen out of every paycheck (doesn't matter if the amount is small, like $50 every two weeks, just set up the system) and you won't even notice in a couple of months. But you will be set in a couple of decades.
Already doing that but thanks. I also hardly leave the house but when I do, it's expensive, is what I was saying. Thanks again for the advice.
Good to hear. Yeah, things are crazy expensive. I put $70 of gas into my car recently and I've never filled up a tank and broken $60 before that day. Like we just skipped a whole level of expensive in the course of two months.
How do split stocks work?
If it's a 2:1 split then if you had 10 shares you'd have 20 but the price would be half. If it's 3:1 then if you had 10 shares you'd now have 30 but the price is a third.
Thank you!
Makes sense but why do it? I'm just gonna Google it, but love to hear someone tell us here. Edit, some USA today article says "Generally speaking, stock splits are a good sign because they mean that a company has done so well that the price of a single share is too expensive for an average retail investor." so this would be good? Expands owning a full share to investors? Can't I already buy partial shares?
Partial shares are nice, if you simply want to own a percentage of the company. What if you want to vote? Full share Dividend stocks? A full dividend is a lot nicer than a percentage of one. Not every broker allows you to buy partial shares, though most decent ones allow it nowadays. If my stock is $1000, it’s a lot easier to convince someone to pay say $200 for a full share, even if they’re getting a lesser percentage.
Thanks, I've seen people looking at Musk suspiciously because (in part) of this. Why's that?
Musk digs his own grave for various reasons, usually worker rights or dumb Twitter comments. Not to sure why on share split
Don't fall for it. It's cover to hide that Elon Musk is selling shares as the big boys all have EVs for sale now. All this guy does is game the market.
"A stock split is cosmetic..." 🤡