TRADING TIPS

Question from Anant about Apple Stock Split

Hubert Senters here. Had a question from Anant. Is it a good idea to encash profit on Apple or wait for the 4-to-1 split? Anant. I think you’re saying take profit in Apple. It doesn’t really matter. It’s really up to you. It depends on what you’re trying to do overall when things split. Let’s use the example of if you had something that was worth $10. If it was an equal split they will give you two $5 bill so you’d have two shares instead of one share $10. It doesn’t really matter if they’re doing a 2-to-1 or 4-to-1. It’s usually bullish a stock split is bullish for an equity so I wouldn’t personally sell out before the 4-to-1 stock split because they tend to after they do their splits they’ll be cheaper which allows people to buy more of them at a lower price. It’s usually rather bullish for an equity and I was long Apple. I would hold through the 4-to-1 split as it probably bounced after 4-to-1 split because it will be cheaper and more people can purchase that thing. Good luck. Hope it helps. See you on the next video. Hubert.

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