Very very little.
If a company does a 1:10 reverse split, is it 10X as 'good' as before the split?
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What Determins if a Company is a "Good" Company?
- Thread starter Bullz n Bearz
- Start date
Very very little.
If a company does a 1:10 reverse split, is it 10X as 'good' as before the split?
Suppose you had a market sell off, something along the lines of the Feb sell off/China correction. Where the unknown is unclear and not defined by a particular sector. Everything being equal, you owned three stocks. a $10 stock, a $50 dollar stock or a $100 stock. If you decided to limit your exposure due to uncertainty which would you sell first?
Quote from Bullz n Bearz:
One of my theories to determine if a company on stock exchange is good is: Current Price.
If say Apple is at 120.00, that must mean there has been high demand for the stock(and Apple's products). If people are willing to pay 120.00 for a share, that must mean it is financially good, right?
What do you all think about this theory? Does it have merit?
The market values what is scarce and what is popular.
If current price is high it might mean there is scarcity for the product or the stock, but the price is of course relative to where price have been before.
A stock might be popular for many reasons, hot sector, hot market, hot products or the stock is financially good.
Quote from Bullz n Bearz:
wucah, I'd rather not though. I value the opinions and thoughts from ET members. I have tons of books. I like the " in the moment' style discussions that take place here on ET. Thanks though.
Nothing is wrong with asking questions that may seem "too basic" for your mind. We all learn on different levels.
I've found that a visit to the nearest public library is more educational than the typical 500 visits to ET actually.
Quote from nutmeg:
Suppose you had a market sell off, something along the lines of the Feb sell off/China correction. Where the unknown is unclear and not defined by a particular sector. Everything being equal, you owned three stocks. a $10 stock, a $50 dollar stock or a $100 stock. If you decided to limit your exposure due to uncertainty which would you sell first?
I don't think it matters, you can sell any of them.
Is this a "big picture like" question?