Tech: Stock Splits -- No Matter How You Slice It
Industry Focus
The Motley Fool
4.6 • 854 Ratings
🗓️ 6 May 2016
⏱️ 18 minutes
🧾️ Download transcript
Summary
We discuss stock splits, the strategy behind them, and why Facebook announced they were using C shares to offer investors a 3-to-1 split.
Transcript
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| 0:00.0 | Stock splits are debatable no matter how you slice it on this tech edition of Industry Focus. Greetings Fools Fools, Sean O'Reilly here at Fool Headquarters in Alexandria, Virginia. |
| 0:16.7 | It is May 6, 2016 Friday, T.G.I.F. |
| 0:21.0 | And in studio with me to talk all things tech as always is Dylan Lewis. What's up man? |
| 0:25.0 | Not too much Sean. Nice to be back. We had a little break last week because I was hosting with Nathan on the show. |
| 0:30.0 | Yeah, how did you do with the chair switch? |
| 0:32.0 | I sat in your chair, the host was a weird and he sat over here |
| 0:35.5 | It was different it was a good show by the way. Well I realized the camera was getting my right side rather than my left side is that your better side |
| 0:40.9 | I don't know I guess you'd have to ask the viewers. |
| 0:43.0 | What do you write into us at industry focus at fool.com to tell us which side is doing the good side? |
| 0:48.0 | There it is the email plug. Now we can get on the show. |
| 0:52.0 | So we're talking about not necessarily a tech theme today, |
| 0:58.0 | but it obviously affects a couple of tech companies, |
| 1:00.0 | which we'll be talking about, but we're talking about stock splits. |
| 1:04.8 | So Dylan, for our listeners that may not know, what is a stock split? |
| 1:08.5 | Stock split is basically, if you think about a company's value and their ownership as a pie. |
| 1:14.3 | Stock splits are taking that pie and maybe it's cut into Ais, we'll say, to start and then cutting |
| 1:20.0 | it into sixteenths. |
| 1:21.4 | What kind of pie is it? I like to think it's a pecan pie. |
| 1:24.0 | Pecan pie. So if you owned an eighth of that pie and it was a two for one split, you |
| 1:30.3 | would be getting now two slices of 16th pie, right? |
| 1:35.0 | Why do people do this, Dylan? |
| 1:37.0 | No. |
... |
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