FYI After doing some research about "stock splits" and RIMM it looks like you guys were right about this stock split thing. RIMM did split 1 for 3, which means I get 3 shares for each share I owned BUT the shares are now worth 1/3 of last weeks price. Thanks for all the help ------------------------------- ForexGuru
damn you guys are ruthless. I'm just starting out and reading your posts makes me very reluctant to post anything at all.
RIMM did split 3 for 1, perhaps I'm using the wrong "investment talk" or whatever. I get 3 shares for each share I had last week but since they are now worth only 1/3 my portfolio is worth about the same. I am still not clear on everything about this "stock split" stuff but I'm getting there. ------------------------------- ForexGuru
Eagledog - honestly, I think all the responses were very funny, and more for a laugh NOT at the person BUT more about the situation. In some way, we all have at times been the ONE staring at the PnL trying to figure OUT why it says, what it says. But this one is funny because HOW simple it would be to figure out why RIMM was trading down so much AND you COMBINE this with the "Guru" implied name... you just got to laugh.
From wikipedia I found this stuff on STOCK SPLITS. Maybe it will clear up any confusion for you guys. Hope this helps. ------------------------------------ Stock split refers to a corporate action that increases the number of shares in a public company. The price of the shares are adjusted such that the before and after market capitalization of the company remains the same and dilution does not occur. Options and warrants are included. Take, for example, a company with 100 shares of stock priced at $50 per share. The market capitalization is 100 Ã $50, or $5000. The company splits its stock 2-for-1. There are now 200 shares of stock and each shareholder holds twice as many shares. The price of each share is adjusted to $25. The market capitalization is 200 Ã $25 = $5000, the same as before the split. Ratios of 2-for-1, 3-for-1, and 3-for-2 splits are the most common, but any ratio is possible. Splits of 4-for-3, 5-for-2, and 5-for-4 are used, though less frequently. Investors will sometimes receive cash payments in lieu of fractional shares. It is often claimed that stock splits, in and of themselves, lead to higher stock prices; research, however, does not bear this out. What is true is that stock splits are usually initiated after a large run up in share price. Momentum investing would suggest that such a trend would continue regardless of the stock split. In any case, stock splits do increase the liquidity of a stock; there are more buyers and sellers for 10 shares at $10 than 1 share at $100. Other effects could be psychological. If many investors believe that a stock split will result in an increased share price and purchase the stock the share price will tend to increase. Others contend that the management of a company, by initiating a stock split, is implicitly conveying its confidence in the future prospects of the company. In a market where there is a high minimum number of shares, or a penalty for trading in so-called odd lots (a non multiple of some arbitrary number of shares), a reduced share price may attract more attention from small investors. Small investors such as these, however, will have negligible impact on the overall price. ------------------------- ForexGuru
You can stop digging now. The fucking hole is deep enough already. We are not the ones confused pea brain.