Getting too complicated can blind you from what's really in front you.

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Monday, May 26, 2014

REMEMBRANCE

My own, original Memorial Day poetic tribute:








REMEMBRANCE

Our brothers and sisters stand united as one,
Each service, all part of the same mission,
With service before self, working tirelessly,
Sacrificing blood and limb so all may live free,
The fallen, the living, the heroes who gave,
With great distinction we salute you today,
The planes, the tanks, and the burning torch,
Our country’s freedom is worth fighting for,
Facing all enemies, all fears in the face,
In your honor we continue to serve in your place.

Friday, May 2, 2014

AAPL: Apple Inc.'s 7 to 1 Split, The What & The Why

AAPL: Understanding the 7 to 1 Split



OK ..... We all recently heard that Apple Inc. had a 7 to 1 split. Isn't that great news? Do you even know what this means. I am going to try and make it simple.

Simple Math

Splitting a stock means you have more shares, but with stock value equaling the same before the split. It's like changing a $5.00 for 5 $1.00's. Instead of 1 bill, you now have 5 bills, but the value is still the same.

More Simple Math

Before the split :
- You own 200 shares of AAPL @ $600/share = $120,000 value
After the split:
- You own 1400 shares of AAPL @ $85.714 = $120,000 value

Even though you look and see that your value hasn't really changed. Now you have more shares of AAPL stock that will hopefully reach $600.00/share.
- You own 1400 shares of AAPL @ $600.0/share = $840,000 value

The Why

What purpose did Apple hope to achieve by doing this?
- With the stock price lower now, investors can buy more, not just 10 shares, but 20.
- With the stock price below $100.00/share, it can now be listed in the Dow Jones Industrial Average as one of the world's largest companies; there is a lot of prestige that follows this.

Hopefully, I've Made It Easy To Understand ..... Trade Well!