damn, i was all set to post the 7 million dollar flaw in gamedudes arguement but cornfedweb beat me to it.
Yes, but its better now that he still doesn't get it. This is why its good for him to have his retirement wrapped up in Suikoden IIs and Rezs.
The sad this is that YOU don't get it. I've been investing for nearly 10 years. I hold my Series 7 license....of which I scored a 90% on it. The average passing score is 73. However, this doesn't mean that any of my advice is approved by the SEC or NASD.
Cornfedwb, you're a smart guy, but you don't understand the stock market.
OK time to call BS. you are not a stock trader, if you you used to be, then you certainly didint trade for very long or with much success.
You can call bs all you want. I never said I was a "stock trader." I have invested in many stocks and I'm a financial advisor. I just want you guys to understand that if a stock splits, you are in the same situation you were before as far as value goes.
Bob has $10,000 invested in XYZ corporation.
Stock XYZ spilts 2 for 1. Before the split, Bob had 100 shares, now he has 200. Presplit, XYZ's stock price was $100, now it's $50. Bob still has $10,000 in his account.
Well, a bunch of shareholders decide to approve a move that would split teh stock 2 for 1 again. Bob now has 400 shares at a price of $25. He still has $10,000 into his account. You could do this ad nauseam. The ONLY way your account will increase in value is if the underlying shares increase. If the stock goes from $25 to $50, you now have $10,000. This would be the same if the stock went from $100 to $200 though.