Well would you believe it if I told you that due too fractional shares that the lower the stock goes the lower the cost averaging goes down for the ones who bought in earler at a much higher price and should you buy now the higher the cost averaging will go for your self depending again how many shares you buy.
Hold one to a thousand shares at $23 dollars a share your cost averaging will go down as investors buy in at a lower share price.
But wait untill the shares go down and lets say buy in at $1 and pick up ten thousand shares well your cost averaging is going to go up to maybe $10 dollars.
This of course is all dependent on the fact your holding long positions and not shorting the stock to offset what the fractional shares bring to the greedies who think there getting a great deal.
The other thing to consider is were they will find shares to short and it is a merger in most cases were they find the shares one is from insiders and should they run out of those they will start shelfing others for there shares that over time as the game is played out depending were they bought they will have averaged down or up due too fractional shares.
It is why insiders believe it or not buy in high one because of fractional shares and second is due to bond payments that is based on capital one put in and what I mean by bonds is convertable bonds that are put ahead of common shares much like a prefered share should something go wrong and they can't make the payments on the interest.
She will be a long wait for the ones who go long you don't want to be to long in the tooth or be needing your capital for a house, clothing or food and in the end it may not be such a good deal.
Institutions stay away from them but there has been some who gotten lucky Warren Buffet from Coke is one example but he had lots of duds as well but always he never picks up many shares of anyone company but injects lots of capital when he finds something he likes.
Read his books, he dosn't spell it out in black and white but it is all there as to how he did it and it has been with us for a very,very long time as to how it is done, I have been told by many.