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kudos:4 | reply to abbie
Re: apple said by abbie :they even crap on their own share holders by not splitting their stock or even paying a dividend. Unbelievable
Agree on the dividend.
But most of Apple's shareholders are institutional shareholders(brokers, mutual funds, pension funds, etc) and by not splitting shares they do them a favor. Purchasing or selling fewer shares for the same amount of money lowers their transaction fees. And they add up quickly when you buy hundreds of thousands of shares at a clip.
Very few companies split shares anymore. It was done in the past so that smaller individual investors could afford to buy shares in their company and so that the price of individual shares remained low enough to interest them. But most small investors don't buy many shares anymore in individual companies. They buy shares in mutual funds and in ETFs where their money is split amongst many companies.
In any case splitting shares is fairily rare today.
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The nine most terrifying words in the English language are, I'm from the government and I'm here to help.
»www.politico.com/2012-election/
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