How would I know? What items of behavior are important to look for? Could you list a few of the top considerations please.
2007-09-02 12:33:37 · 1 answers · asked by Paul 3 in Business & Finance ➔ Investing
Perhaps the top consideration is the make up of the stockholder. If a sizeable chunk of stockholders purchase in single or odd-lots (less than 100 shares), then high stock prices move this stock from the consideration of that group of people. Consider, would you be more interested in a company that makes 10 cents per share profit and sells for $10 a share, or a company that makes a $1 per share profit and sells for $100? It is hard to figure at times, but if stock starts to get more expensive than normally expected, some stockholders will sell off and take their profits. If you split the stock so that the price per share looks more normal, they will hold on to it, even more now that they now own two or three times the number of shares.
2007-09-03 16:11:41 · answer #1 · answered by Rabbit 7 · 1⤊ 0⤋