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This is fun to play around with. Can you explain how stock splits are accounted for in the "Percent gain" calculation for this case?: http://newinvestordaily.c
by count_zero 11y ago
This is fun to play around with.
Can you explain how stock splits are accounted for in the "Percent gain" calculation for this case?:
http://newinvestordaily.com/what-would-it-be-worth/r/30991 http://newinvestordaily.com/what-would-it-be-worth/r/30991
Intuitively that value would be much larger (300% or so instead of 40%).
- KarimHmaissi 11y agoSplits and dividends should be factored into the price. I use the adjusted closing price http://www.investopedia.com/terms/a/adjusted_closing_price.asp http://www.investopedia.com/terms/a/adjusted_closing_price.a.... However in this case with Ebay it wasn't a stock split but rather a big chunk of Ebay (Paypal) split off into a separate independent company. I think what happened is when Ebay and Paypal separated Ebay share owners gained the equivalent Paypal shares. So this would throw off the numbers.