7.30.2012

IBM Should Split 4 to 1

IBM: A Stock That Should Split

 Excerpt:
To make things easier for retail investors and individual shareholders, IBM -- a $224B market cap company -- should split its stock 4-for-1. Under this arrangement the shares would each cost under $50. In a hypothetical investment of $500, an individual would now only be able to afford 2 shares with the stock priced at $194.62, leaving over $100 of un-invested capital. The same investor could buy 10 shares of the post-split (4 to 1) IBM stock (in our example: $48.66 per share), thereby investing nearly the complete $500. Small investors who wish to contribute $100 monthly to buy the stock could also regulary buy a couple shares where now they are prohibited by the share price.
Comment: The logo back when I worked for them (early '70s)

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