This week’s Intelligent Investor is about stock splits. Mr. Zweig is informing investors that a stock split does not make a stock more valuable. To make his point, he uses the analogy that two nickels are not more valuable than a dime. During his discussion Jason points out that there is the tendency for stocks that split to become the target of high frequency traders because lower priced stocks are more profitable in their trading formula. We know that the Dow Jones Industrial Average is a p...
Published on December 07, 2013 08:45