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Chingo De Dinero

The basics of markets, and what you need to know to make a “Chingo de Dinero”

Stock Splits

Stock splits are not important!!!!

Stock splits are a simple mathematical action.  You divide the price by two and multiply the number of shares by two.  Of course, if you own a stock, it doubles, the stock splits, and now you have twice as many shares at the same price…that is very good.  But, it is no better than having the same number of shares that are twice as valuable than when you originally purchased.  It should have no affect on what the company is worth, or how the price will move in the future.

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