Monday, April 28, 2014 9:22:46 AM
I am not confused, just trying to correct the incorrect information you are posting and continue to post...
This one first:
What ever PPS one spends B4 the FS, you simply divide it by 7 & come up with an averaged down PPS.
How does a stock split mean your averaging down?
Now you say:
How does that make sense? Here is the definition for you just in case you didn't know : http://www.investopedia.com/terms/a/averagedown.asp . When a company does a split and you are holding the stock, it does not mean you averaged down. Also, how does selling 70 shares make you more money then selling 10 at the higher price???
Using your example of $560
AAPL pre-split : 10 shares x $560 = $5600
AAPL post-split : 100 shares x $80 = $5600
ITS THE SAME... Same with the DIVY...
Have a great day and gltu
This one first:
What ever PPS one spends B4 the FS, you simply divide it by 7 & come up with an averaged down PPS.
How does a stock split mean your averaging down?
Now you say:
This is called/referred to as averaging down your price per share. Yes, the total you paid out stays the same but you now have 60 additional shares that can be sold. So selling 10 shares at any given price per share opposed to selling 70 shares for the same amount, you are going to make more money selling 70 shares then if you only had 10.
How does that make sense? Here is the definition for you just in case you didn't know : http://www.investopedia.com/terms/a/averagedown.asp . When a company does a split and you are holding the stock, it does not mean you averaged down. Also, how does selling 70 shares make you more money then selling 10 at the higher price???
Using your example of $560
AAPL pre-split : 10 shares x $560 = $5600
AAPL post-split : 100 shares x $80 = $5600
ITS THE SAME... Same with the DIVY...
Have a great day and gltu
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