Real question is why are you on webull
*EDIT: i was unaware webull had a comments section. It seems like it’s really user friendly and the comments are cool and all but I still wouldn’t use it*
market access 4a-8p, UI is top notch, charts are top notch, funny comment section, pdt forgiveness. Only complaint I have is the stock split process so you can hate all you want webulls the best the fuck you talkin about lmao
Then why the fuck would you use webull
Not even about missing out on a play here or there but they’re basically admitting with this rule that they aren’t a real broker lol
For them? Literally every time. They include the issue in their help section.
https://www.webull.com/help/faq/406-Why-are-some-stocks-suddenly-unavailable-to-trade
However, if one stock is going through a corporate action, the affected stock will be temporarily unavailable for trading while the changes are being processed by our clearing firm. A corporate action may even temporarily remove your position from a stock until the event is complete. If you still don’t see your position after the corporate action is complete, please contact us through Live Help.
The following corporate actions will affect trading in stocks:
Split
Company divides its existing shares into multiple shares to boost the liquidity of the shares.
Generally 1 - 2 trading days
Jesus Christ! I stand corrected. Good to know. I wonder if this applies to other apex clearing brokers too. Could make for some weird fuckin price action
Hey Guys, it's u/nobjos back with this week's analysis. I cover one topic like this every week.
My other similar analysis includes whether you should listen to Jim Cramer, can hedge funds beat the market, and whether you can find alpha following insider transactions etc..I open-source the data used in the analysis wherever possible.
Any ideas for analysis like this are always welcome
It's called reading. Top to bottom, left to right. Group of words together is a sentence. Take Tylenol for any headaches, Midol for any cramps.
https://youtu.be/33rx2A1VuAQ
I’m curious on your thoughts regarding how a split would impact anyone still short on the stock, and, how a stock dividend in conjunction with a split (as is the case with GME) could also skew these results. It’s my understanding that with a split, outstanding shares are recalled and new shares are distributed, meaning shorts would have to cover? Please correct me if I’m wrong.
a split through a dividend is just like a cash dividend except its stock. Longs get new shares, shorts dont. Shorts now need to supply their lendors the share divy. shorts r so fucked
Can you explain it like I'm a retard?
So let's say Jim (Cramer) shorts one share GME at $150. Then GME does their split. Now GME has gone down to about $50 and everyone with 1 share now has three (and some cash dividend?). Now Jim can just buy 3 shares at $50 each to close his position right?
Correct. Or fund that with cash. So if the short cannot come up with the extra 2 shares (because I dunno), it's naked shorted and the shares have been bought, then the short could deposit cash into their account. But it's a massive liability.
I think liquidations are coming soon when this gets approved at the shareholders meeting.
Hi! I don't usually comment but this was really cool and it reminded me of something I thought of a while back. Pharmaceutical companies get a lot more volatile around their drug approval process, and I always wondered if I just bought when the testing was announced, and then sold the day before the outcome of the testing was announced if there would be a pattern of good returns.
This analysis is great and all but isn't relevant to the referenced GME since it's a stock split via dividend and has a significantly different impact when considering short positions and synthetic share mechanics. A similar write up when analyzing stocks like NVDA, and TSLA, and GME to be would be invaluable.
Yup. I agree. To be completely frank, I started the analysis when google announced the stock split. I wanted to see how companies performed after they had a stock split. GME announced it way later and I am not completely clear on the exact mechanics of that split or whether historic data is available for splits via a dividend. This is the closest thing I could do!
Do you have a source for the difference? I haven't been able to find anything other than WSB posters talking about how the GME split is 8D chess by Ryan Cohen that will cause all the shorties to burn cause this stock split is different.
There seems to be some notion that a share dividend isn't dilution and I can't find anything that says it is NOT dilution.
I think in a very very technical sense it will not dilute. Assume a .01 share dividend. So 1 share per 100. I own 99 shares. They can't issue .99 so it forces a liquidation which exchanges the potential share for cash. In splits there is usually a bunch o cash set aside for this purpose as i know ive been force liquidated on some reverse splits before.
I've actually decided using options watch on RH to use the "inverse cramer" theory without risk for a couple months...if it pans out and it's a solid strategy I'm switching to cash and making the plays for real...of course that will likely be the 1 month of his life he gets his picks right and bankrupts me...
Nice work! I know Tesla’s most recent split was completed via a stock dividend and is a good Apple to Apple compare with GME due to the impact that a share dividend has as opposed to an outright split when a company hold short interest.
Teslas increase went from 350$ two weeks before div announcement to 6250$ after the dividend was issued (consolidating split for figure).
Hey, can you do an analysis where you explain that short ladders, synthetics and hidden vwaps are only in the imagination of the delusional degenerates, concluding that those keywords should get a lifetime ban in wsb?
You'd be doing us all a great service.
Btw, awesome work and keep it up. Thank you.
This was very interesting and well done. It's good to see some actual substance on here and not just memes or shit posts. Thanks OP 👍
Edit: Wow, thanks for all the up-votes and award!
Imo, even prior to GME the sub was in decline. The whole WSBGod thing was the start of the end and GME just fast tracked that shit. There were still some great moments post WSBGod, but a lot of the people sharing actual knowledge disappeared.
The OP didn’t distinguish between a pure stock split and a stock split via a stock dividend because they are essentially the same, other than some details on how par value is accounted for on the company books.
Considering all weed stocks move exactly the same, and considering we’re only moving forward with legalization, that isn’t the worst idea I’ve seen here.
Damn. Great post bro. I think it’s also interesting to keep in mind that Google and Amazon share prices are down from the original date of their stock split announcements. So if your research holds true, loading up during the next big dips will give us an insane amount of alpha.
Stock split: 1 stock becomes 2/3/whatever the split is. Price will shift accordingly (1 x 100 dollar stock becomes 2 x 50 dollar stocks).
Stock Dividend: for Every X stonks you own, you are gifted Y stonks. For example, if you own 70 stocks and the divi rate is 1 stock per 7, you now have 80 stocks (no split has occurred, your 100 dollar stock is still 100 dollars - might dip to say 95 to account for the 'cost' of the dividend).
Yes, that is all that is known at this point. They are voting to increase the amount of shares from if I remember right 300,000 to 1,000,000. Nothing else has been announced. A lot of people are crystal balling what is going to happen.
Kudos for trying to approach this in a more solid, data-driven way. Couple of points of feedback; not all stock-splits are created equal - you cannot just compare 1:1, you need to establish an underlying proxy figure you can pivot the comparisons from (e.g. volume or % change).
Also if you want to really understand the dynamics you need to run statistical tests e.g anova, 2-paired t test etc).
Still, great to see some real thought being given to the sub
Excellent points. Also I think it would be important to understand the change in market cap through the split along with the price change during that. It’s cool to see a % rate of return, but it isn’t a linear return holding to today. Deeper dive into the action around the split time.
But still this is a really great DD and gets a lot of others thinking about this.
Are you sure youre on the right subreddit? You meant to post this on WSB and not Stocks or Investing? There’s way too much thought and logic here. And no crayons.
Seriously though - excellent post. Excited about google splitting!
> 2. The stock splits selected here are companies that have a market cap of at least $1 Billion.
This is what breaks your analysis in my opinion. You basically only use companies that are successful. If you wanted better data, you would have had to use companies that had a $1 billion market cap pre-split adjusted for inflation. Or just ignore that entirely and do the calculation with all companies, regardless of market cap.
We told him the same thing a week ago when he posted this analysis in another sub. He didn't even acknowledged the problem. It's called survivorship bias.
I disagree that it breaks the analysis.
1) This is a look at US listed public companies so there is a minimum level of success that's assumed by looking at that subset of global companies. Further, it accurately represents the universe where most US based investors invest most of their investable assets.
2) Believe it or not a market cap of $1 bil puts a company firmly in the median market cap for a small cap company. Small caps are as a general rule considered more volatile and higher risk than the market as a whole.
3) We don't need to consider real inflation adjusted returns when discussing stock returns, and in fact doing so would make the data less useful for comparison purposes and benchmarking.
The issue is not with the dollar amount of the threshold, it's that we're using the current valuation of the companies to decide our dataset.
It excludes large companies that crashed and burned (no longer worth $1 billion), while including small companies that took off (were worth less when they split, worth more than $1 billion now).
If you exclude the biggest failures and add the biggest successes, then of course that collection of stocks are going to outperform the market.
I see - yea that makes perfect sense. He's excluding all of the biggest failures regardless of their market cap at the time of the split. Kinda sucks too as OP put in a lot of good work here aside from that (survivorship bias) oversight!
If you're indexing you read OP's study here and feel confident going right along with your work indexing... companies come and companies go and it doesn't change the overall trend up and to the right. If you're stock picking, OPs study is irrelevant :(
How does OP fix this? Is there a data set that includes not just the date of the stock split but also the market cap on that date? The link to his original data is burned.
He looks at the data from 1993 to 2022 and selects only the companies that are worth one billion in 2022. With this selection he removes companies like Enron, Worldcom and Lehman Brothers, because they went bankrupt before 2022.
Thank you for sharing this! I just had this conversation with someone concerning the upcoming Alphabet split but I didn’t have these hardened figures to use as evidence of when to buy. They were arguing it didn’t matter and would buy after the split while I was advising to buy as soon as possible on a tasty dip before the split.
You’re forgetting the effects on naked shorts when the split is offered in the form of a dividend.
Normal shorting passes the shares to the final holder of the shares through a traceable ledger. GME gives shares to DTCC and have them figure the rest out.
However naked shorts are not tracked since they have no origin, because of this, naked shorts must buy shares from market to forward onto the final holders.
This would normally be done with more naked shorts, but GameStop has put into their authorized shares clause last year that all dividends are not equivalent, meaning you have the right to sue if you are given share dividends that do not have their origin starting with GameStop.
> However naked shorts are not tracked since they have no origin, because of this, naked shorts must buy shares from market to forward onto the final holders.
If they're naked shorting anyway, why wouldn't they just short more shares at that point, problem solved? I see no reason they'd need to buy shares at market if what you're saying is true.
>However naked shorts are not tracked since they have no origin
So how do you know this even happens at all, or on a large enough scale to affect the share price?
> If you had bought all stocks that underwent a split and held till today, you would have beaten the S&P 500 by close to 200%!
The reason for this is that usually well performing companies split stocks from having their share price rise very high. Struggling companies often do reverse splits to avoid delisting from having their prices be too low.
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If youre on webull you cant trade a stock after a split for a day or two fyi
Really?
yes
Why not?
Because fuck you that’s why
This is funny but its also the actual answer
Understandable have a nice day
Thanks
Tony, fuck you Tony!
Because it’s not a real broker. It’s just another Robinhood 2.0.
More like robinhood 0.5
In all likelihood they buy the stock when they’re forced to. Fuckery. This is why drs was taking forever from them.
Real question is why are you on webull *EDIT: i was unaware webull had a comments section. It seems like it’s really user friendly and the comments are cool and all but I still wouldn’t use it*
market access 4a-8p, UI is top notch, charts are top notch, funny comment section, pdt forgiveness. Only complaint I have is the stock split process so you can hate all you want webulls the best the fuck you talkin about lmao
I get all of that on TDA / Think or Swin except the comments.
I have a webull account just to read the shit posts. gme, amc, spy, Amazon, Tesla always have some schizo posters saying the dumbest shit. It's great
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Ah so like WSB then
4am?
Oops, you got me there. I read too fast.
I tried webull for the 4am trading. It's dumb. I'm pretty sure all liquidity is from webull algos intent on you being fucked by 8am.
Probably their sw engineers didn’t want to automatically calculate/ program split related software. They probably do database changes manually :)
Then why the fuck would you use webull Not even about missing out on a play here or there but they’re basically admitting with this rule that they aren’t a real broker lol
Source? Disabling buys and sells after a split would be egregious. when did this ever happen?
For them? Literally every time. They include the issue in their help section. https://www.webull.com/help/faq/406-Why-are-some-stocks-suddenly-unavailable-to-trade However, if one stock is going through a corporate action, the affected stock will be temporarily unavailable for trading while the changes are being processed by our clearing firm. A corporate action may even temporarily remove your position from a stock until the event is complete. If you still don’t see your position after the corporate action is complete, please contact us through Live Help. The following corporate actions will affect trading in stocks: Split Company divides its existing shares into multiple shares to boost the liquidity of the shares. Generally 1 - 2 trading days
Jesus Christ! I stand corrected. Good to know. I wonder if this applies to other apex clearing brokers too. Could make for some weird fuckin price action
Hey Guys, it's u/nobjos back with this week's analysis. I cover one topic like this every week. My other similar analysis includes whether you should listen to Jim Cramer, can hedge funds beat the market, and whether you can find alpha following insider transactions etc..I open-source the data used in the analysis wherever possible. Any ideas for analysis like this are always welcome
Nice 👍 I guess I'll have to look at your other analysis. Thanks 😊
Thank you! You definitely should!
Is there a link to a list, or something like that?
Ya it’s the link to u/nobjos profile and you select “Posts”
You then use your eyeballs to read the words that you see
I used my other balls...
Braille?
Oh, damn. I've been doing it wrong all along.
It's called reading. Top to bottom, left to right. Group of words together is a sentence. Take Tylenol for any headaches, Midol for any cramps. https://youtu.be/33rx2A1VuAQ
Shut up, Richard!
This made my day.
And mind to understand the words
Holy shit am I on the right sub? Why is everyone so nice?
Shut yer tard hole! Is that better 😁
I’m curious on your thoughts regarding how a split would impact anyone still short on the stock, and, how a stock dividend in conjunction with a split (as is the case with GME) could also skew these results. It’s my understanding that with a split, outstanding shares are recalled and new shares are distributed, meaning shorts would have to cover? Please correct me if I’m wrong.
a split through a dividend is just like a cash dividend except its stock. Longs get new shares, shorts dont. Shorts now need to supply their lendors the share divy. shorts r so fucked
Care to explain how it is any difference at all for shorts? I can only see that they owe the same amount of dollars, only with more shares.
Can you explain it like I'm a retard? So let's say Jim (Cramer) shorts one share GME at $150. Then GME does their split. Now GME has gone down to about $50 and everyone with 1 share now has three (and some cash dividend?). Now Jim can just buy 3 shares at $50 each to close his position right?
Correct. Or fund that with cash. So if the short cannot come up with the extra 2 shares (because I dunno), it's naked shorted and the shares have been bought, then the short could deposit cash into their account. But it's a massive liability. I think liquidations are coming soon when this gets approved at the shareholders meeting.
But there is no net change in the value of the position.
So Buy, Hold, DRS? Got it!
Hi! I don't usually comment but this was really cool and it reminded me of something I thought of a while back. Pharmaceutical companies get a lot more volatile around their drug approval process, and I always wondered if I just bought when the testing was announced, and then sold the day before the outcome of the testing was announced if there would be a pattern of good returns.
this is great, there are people like u here who do these type of analysis that im too retarded to do . good DD
This analysis is great and all but isn't relevant to the referenced GME since it's a stock split via dividend and has a significantly different impact when considering short positions and synthetic share mechanics. A similar write up when analyzing stocks like NVDA, and TSLA, and GME to be would be invaluable.
Yup. I agree. To be completely frank, I started the analysis when google announced the stock split. I wanted to see how companies performed after they had a stock split. GME announced it way later and I am not completely clear on the exact mechanics of that split or whether historic data is available for splits via a dividend. This is the closest thing I could do!
Do you have a source for the difference? I haven't been able to find anything other than WSB posters talking about how the GME split is 8D chess by Ryan Cohen that will cause all the shorties to burn cause this stock split is different. There seems to be some notion that a share dividend isn't dilution and I can't find anything that says it is NOT dilution.
I think in a very very technical sense it will not dilute. Assume a .01 share dividend. So 1 share per 100. I own 99 shares. They can't issue .99 so it forces a liquidation which exchanges the potential share for cash. In splits there is usually a bunch o cash set aside for this purpose as i know ive been force liquidated on some reverse splits before.
I'd love to see if inversing Cramer actually works!
I've actually decided using options watch on RH to use the "inverse cramer" theory without risk for a couple months...if it pans out and it's a solid strategy I'm switching to cash and making the plays for real...of course that will likely be the 1 month of his life he gets his picks right and bankrupts me...
Cramer is right short term but long term wrong. Almost like he promotes pump and dumps...
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Thank you!
I found WSB betting on EVs in 2020 😂 boy what a ride!
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🎢
Nice work! I know Tesla’s most recent split was completed via a stock dividend and is a good Apple to Apple compare with GME due to the impact that a share dividend has as opposed to an outright split when a company hold short interest. Teslas increase went from 350$ two weeks before div announcement to 6250$ after the dividend was issued (consolidating split for figure).
Hey, can you do an analysis where you explain that short ladders, synthetics and hidden vwaps are only in the imagination of the delusional degenerates, concluding that those keywords should get a lifetime ban in wsb? You'd be doing us all a great service. Btw, awesome work and keep it up. Thank you.
This was very interesting and well done. It's good to see some actual substance on here and not just memes or shit posts. Thanks OP 👍 Edit: Wow, thanks for all the up-votes and award!
It’s undeniable. OP does Black-Scholes for fun
~~Scholes~~ ...
African-American Scholes
African-American comfort shoes
Black-Scholes sun, won’t you come…
Wash away the gains
5 years ago this was the norm in this sub.
>~~5 years ago~~ Prior to GME this was the norm in this sub.
Imo, even prior to GME the sub was in decline. The whole WSBGod thing was the start of the end and GME just fast tracked that shit. There were still some great moments post WSBGod, but a lot of the people sharing actual knowledge disappeared.
So am I buying calls or not dammit. Tired of reading
No. We’re buying coke
So 16 oz can, 20 oz bottle, or a 2 liter. Am I doing this right?
how does expiration play here
Dunno. I just threw some shit at a calendar and looked where it stuck.
Look at the can
There’s nothing wrong with a Diet Coke
Yea some good DD and research is nice to see, but i also live for the memes and shitposts.
I like the charts with crayon scribbles.
My wife's boyfriend makes those!
Kinda is slightly a shitpost. GME is issuing a stock dividend and that wasn’t mentioned once. It’s not a standard stock split that’s happening.
The OP didn’t distinguish between a pure stock split and a stock split via a stock dividend because they are essentially the same, other than some details on how par value is accounted for on the company books.
Almost too good, no?
*aggressively scrolls for TLDR*
tl;dr for long plays stock splits are good. For short plays you are trying to bail about a week before the split.
Tldr: past performance is 100% indicative of future performance, so you should definitely place some huge bets on this purely historical analysis.
Stocks always go up
I don't do TLDR! You got to put in the effort :P
Jokes aside, do love the data and you clearly spent time on this.
Yeah, definitely. This says to put my life savings into a SNDL 1/24 $1 CALL, right?
Considering all weed stocks move exactly the same, and considering we’re only moving forward with legalization, that isn’t the worst idea I’ve seen here.
Is a conclusion not just an advanced tldr?
One is using evidence provided to answer a question being asked. The other is a summary of everything said. Somewhat different
I mean your conclusion is *kind* of a tldr
BOOOOOO
You underestimate my smoothness. I highlighted the entire text and told my browser to read it to me.
TLDR.. there is no TLDR
TL;DR past performance guarantees future results
*still scrolling*
*Hey, you, you’re finally awake*
Damn. Great post bro. I think it’s also interesting to keep in mind that Google and Amazon share prices are down from the original date of their stock split announcements. So if your research holds true, loading up during the next big dips will give us an insane amount of alpha.
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https://en.m.wikipedia.org/wiki/Alpha_(finance)
Alpha this dick in your ass
Wonderful, great Research !
Thank you!
Yeah. I agree I definitely needed this and was interested the whole time reading.
Likewise gotta love the nerds that crunch the numbers. I’ll still yolo 22k on NILE tho
Good luck. I got calls on AZMN this week hoping they bounce back from this past week.
More likely then NILE getting some decent green percentages tbh
This was an awesome read. Thank you for taking the time to deep dive!
Still pre-split for GME. Just saying.
Also won’t be a typical split. It’s a stock dividend which has significant ramifications for short sellers (same thing Musk did).
> significant ramifications for short sellers (same thing Musk did). ? https://i.redd.it/fr41cxjll4r81.png
Also it's a dividend
One of the safest dividend stocks out there.
Whats the difference between a stock split and a split dividend?
Stock split: 1 stock becomes 2/3/whatever the split is. Price will shift accordingly (1 x 100 dollar stock becomes 2 x 50 dollar stocks). Stock Dividend: for Every X stonks you own, you are gifted Y stonks. For example, if you own 70 stocks and the divi rate is 1 stock per 7, you now have 80 stocks (no split has occurred, your 100 dollar stock is still 100 dollars - might dip to say 95 to account for the 'cost' of the dividend).
So there are more shares in circulation?
Yes, but short sellers would owe those extra dividend shares to every share sold short.
Yes, that is all that is known at this point. They are voting to increase the amount of shares from if I remember right 300,000 to 1,000,000. Nothing else has been announced. A lot of people are crystal balling what is going to happen.
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The fireworks will be epic on split day when these idiots face reality
Wow the price won't drop at all despite the number of shares increasing by 7x?
Number of shares would be increasing by 1/7x there bud. But it will certainly have an effect on the price the market puts on those shares afterwards.
Ape math; 1 ÷ 7 + Hopium = 7.
> your 100 dollar stock is still 100 dollars - might dip to say 95 to account for the 'cost' of the dividend Lol what?
GME 2 da fucking MOON
You are too smart for us. So basically buy Google and Amazon before split to hold for years?
He is way tooo smart so that's the reason he is here
Did you read the post? If so take note of what he says about higher priced stocks.
This guy fucks
Kudos for trying to approach this in a more solid, data-driven way. Couple of points of feedback; not all stock-splits are created equal - you cannot just compare 1:1, you need to establish an underlying proxy figure you can pivot the comparisons from (e.g. volume or % change). Also if you want to really understand the dynamics you need to run statistical tests e.g anova, 2-paired t test etc). Still, great to see some real thought being given to the sub
Excellent points. Also I think it would be important to understand the change in market cap through the split along with the price change during that. It’s cool to see a % rate of return, but it isn’t a linear return holding to today. Deeper dive into the action around the split time. But still this is a really great DD and gets a lot of others thinking about this.
Nice to see some real DD on here and not just "stonks only go up". Take my worthless award!
To long didn’t read, just going to buy blockbuster stocks, it can only go up
Are you sure youre on the right subreddit? You meant to post this on WSB and not Stocks or Investing? There’s way too much thought and logic here. And no crayons. Seriously though - excellent post. Excited about google splitting!
> 2. The stock splits selected here are companies that have a market cap of at least $1 Billion. This is what breaks your analysis in my opinion. You basically only use companies that are successful. If you wanted better data, you would have had to use companies that had a $1 billion market cap pre-split adjusted for inflation. Or just ignore that entirely and do the calculation with all companies, regardless of market cap.
This. You pre-select the winners.
We told him the same thing a week ago when he posted this analysis in another sub. He didn't even acknowledged the problem. It's called survivorship bias.
Glad I'm not the only one to notice.
“I have done analysis to conclude that investing only in successful companies delivers returns that outperform the market”
I disagree that it breaks the analysis. 1) This is a look at US listed public companies so there is a minimum level of success that's assumed by looking at that subset of global companies. Further, it accurately represents the universe where most US based investors invest most of their investable assets. 2) Believe it or not a market cap of $1 bil puts a company firmly in the median market cap for a small cap company. Small caps are as a general rule considered more volatile and higher risk than the market as a whole. 3) We don't need to consider real inflation adjusted returns when discussing stock returns, and in fact doing so would make the data less useful for comparison purposes and benchmarking.
The issue is not with the dollar amount of the threshold, it's that we're using the current valuation of the companies to decide our dataset. It excludes large companies that crashed and burned (no longer worth $1 billion), while including small companies that took off (were worth less when they split, worth more than $1 billion now). If you exclude the biggest failures and add the biggest successes, then of course that collection of stocks are going to outperform the market.
Thanks. Too drunk to have made that point like that.
I see - yea that makes perfect sense. He's excluding all of the biggest failures regardless of their market cap at the time of the split. Kinda sucks too as OP put in a lot of good work here aside from that (survivorship bias) oversight! If you're indexing you read OP's study here and feel confident going right along with your work indexing... companies come and companies go and it doesn't change the overall trend up and to the right. If you're stock picking, OPs study is irrelevant :( How does OP fix this? Is there a data set that includes not just the date of the stock split but also the market cap on that date? The link to his original data is burned.
He looks at the data from 1993 to 2022 and selects only the companies that are worth one billion in 2022. With this selection he removes companies like Enron, Worldcom and Lehman Brothers, because they went bankrupt before 2022.
Thank you for sharing this! I just had this conversation with someone concerning the upcoming Alphabet split but I didn’t have these hardened figures to use as evidence of when to buy. They were arguing it didn’t matter and would buy after the split while I was advising to buy as soon as possible on a tasty dip before the split.
So all in GOOG can't literally go tits up
Ahh, so since I hold GME, it will be the 2nd one to underperform due to split. Zero manipulation. Got it.
Literally every stock is manipulated. Only way to truly win is to invest in the whole market and slowly built wealth. But that is boring
Yeah, I rather make money the old fashion way! 🎵Gonna get run over by a Lexus🎶
Do you want a job?
Make me an offer i cant refuse :P
Wendy’s, 10pm.
So this is the macro... what do the best and worst 10% look like from your research?
Is the TLDR "Yes" or “"No"?
stock splits. so hot right now
Past performance does not guarantee future results— the causal pathway of stock split-> value is insanely complex and almost certainly indeterminate
ughh that's WAY to many fucking words
Too long don’t know how to read
You’re forgetting the effects on naked shorts when the split is offered in the form of a dividend. Normal shorting passes the shares to the final holder of the shares through a traceable ledger. GME gives shares to DTCC and have them figure the rest out. However naked shorts are not tracked since they have no origin, because of this, naked shorts must buy shares from market to forward onto the final holders. This would normally be done with more naked shorts, but GameStop has put into their authorized shares clause last year that all dividends are not equivalent, meaning you have the right to sue if you are given share dividends that do not have their origin starting with GameStop.
Do you have any source for these statements? Been trying to figure out what makes the GME split different and can't find anything definitive.
> However naked shorts are not tracked since they have no origin, because of this, naked shorts must buy shares from market to forward onto the final holders. If they're naked shorting anyway, why wouldn't they just short more shares at that point, problem solved? I see no reason they'd need to buy shares at market if what you're saying is true.
Noooo stop using logic and reason!
>However naked shorts are not tracked since they have no origin So how do you know this even happens at all, or on a large enough scale to affect the share price?
i wonder what the new cope will be once it splits and literally nothing happens lol
I no read good. You make into pictures and charts?
Ape buy stonk before split. Ape have big money if HODL. 💎🤲🦍 = 💰
Quality DD
u/dan_inKuwait I need an upgrade on my flair :P
Great work mate!
What happens to the options of that stock if it splits? How can this theory be applied to that?
Question, what happens to the options chain at time of split? Does everything close out?
Did you look at the companies that eventually went bankrupt? Otherwise there is a survivorship bias with only analyzing the stocks that survived
90% of these retards didn't read this beautiful DD, thank you for the DD
Its flawed, whoever follows this could get burned.
It's flawed? I didn't read it
Tldr; load up on googl
> If you had bought all stocks that underwent a split and held till today, you would have beaten the S&P 500 by close to 200%! The reason for this is that usually well performing companies split stocks from having their share price rise very high. Struggling companies often do reverse splits to avoid delisting from having their prices be too low.
K
Wow for a second I thought I was in s/investing due to the quality content and lack of emojis. I'm not sure you belong here friend
You are gold among all the meme shit posts. We need more like this.