The pizza analogy is perfect for understanding this concept. What realy matters is how the option adjustments work automaticaly to presrve value. The Netflix example with a 10 for 1 split makes it much clearer how this plays out in practise. Companies often use forward splits as a psycological tool to attract more retail participation.
The pizza analogy is perfect for understanding this concept. What realy matters is how the option adjustments work automaticaly to presrve value. The Netflix example with a 10 for 1 split makes it much clearer how this plays out in practise. Companies often use forward splits as a psycological tool to attract more retail participation.
yup and still maintain ownership.
good knowledge post.
This piece really made me think. What if the intended retail investor appeal fails to materialise after a split?