Rimm Crashes To 82 - Why?

krazykarl · Aug 22, 2007

Quote from ForexGuru:

OK thanks for the info. They should give warnings before they do this, I almost had a heart attack when I checked quotes today.

I got $50,000 in RIMM and can't take shock like that. :eek:
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I call BS.

krazykarl · Aug 22, 2007

Quote from ForexGuru:

I happen to be a well respected Forex instructor.
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People that are well respected never have to say they are; their reputation speaks for them.

krazykarl · Aug 22, 2007

Quote from ForexGuru:

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

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ForexGuru
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After reading more posts, this guy has to be a troll.

krazykarl · Aug 22, 2007

Quote from ForexGuru:

From wikipedia I found this stuff on STOCK SPLITS. Maybe it will clear up any confusion for you guys. Hope this helps.
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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.

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ForexGuru
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No one here was confused - this is basic $hit. No way in hell you trade forex without know equity basics.

krazykarl · Aug 22, 2007

I just finished the thread, and after changing my damp pants, have decided I was sucked by a troll.....

stupididiot · Aug 22, 2007

Quote from krazykarl:

I call BS.
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Ya think?

macal425 · Aug 22, 2007

Anyone notice that this thread has become a 'Sticky' in Chit Chat, along with the 2 'Jokes' threads. This is proof positive that mods are human after all, and have a sense of humor.

Don Bright · Aug 22, 2007

Damn, I was sucked into reading this whole thread because I like to check the jokes, you guys are relentless, LOL.

Don

bontrjd · Aug 22, 2007

Very funny thread. Good for a hearty laugh.

sim03 · Aug 22, 2007

Quote from krazykarl:

No one here was confused - this is basic $hit. No way in hell you trade forex without know equity basics.
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Hey, not so fast. At least judging from ET, it would seem that many who "trade" forex, in fact, don't know equity basics. No need even to tell a limit from a stop... or (gasp) understand something as complicated as "volume."