http://www.penny-saved.com/2006/08/17/rai-surprise/ Personal Finance and Wealth by the Penny Wed, 20 Aug 2008 13:08:26 +0000 http://wordpress.org/?v=2.6.1 http://www.penny-saved.com/2006/08/17/rai-surprise/#comment-230 thatedeguy Thu, 17 Aug 2006 21:33:53 +0000 http://www.penny-saved.com/2006/08/17/rai-surprise/#comment-230 Actually, no. If they had issued as many shares as they already had, it would have diluted my shares. A stock split gives 2 shares for every one share to each owner of record. Basically, I own the same % as I did before, it's just in twice as many shares. In the long term, as the dividends continue to increase, I get more and more from it. It's actually quite good for the long term. One of the side effects of it for the short term is that the stock looks better to the untrained eye. Even though it is essentially the exact same , with the exact same numbers except for twice as many stocks, it has a price tag of half what it was. Tell me, if Google dropped by $150 would you buy? I would certainly think about it. Actually, no. If they had issued as many shares as they already had, it would have diluted my shares. A stock split gives 2 shares for every one share to each owner of record. Basically, I own the same % as I did before, it’s just in twice as many shares.
In the long term, as the dividends continue to increase, I get more and more from it.
It’s actually quite good for the long term.
One of the side effects of it for the short term is that the stock looks better to the untrained eye. Even though it is essentially the exact same , with the exact same numbers except for twice as many stocks, it has a price tag of half what it was. Tell me, if Google dropped by $150 would you buy? I would certainly think about it.

]]> http://www.penny-saved.com/2006/08/17/rai-surprise/#comment-229 my new self Thu, 17 Aug 2006 21:25:00 +0000 http://www.penny-saved.com/2006/08/17/rai-surprise/#comment-229 I'm not so sure it was that good. Doesn't it just mean that your shares are now more diluted? I’m not so sure it was that good. Doesn’t it just mean that your shares are now more diluted?

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