Stock splits and $0.01 dividends shouldn’t matter. But they seemingly do. In part because they provide signals to market participants. From a logical perspective it should not matter whether a stock is trading at $5, $50 or $500. The value of the company remains the same. However market participants, including high frequency traders, trade these stocks very differently. Analysts are skeptical that much has changed at Citigroup, but the company is definitely trying to signal that better times are ahead. In today’s screencast a look at stock splits and dividends.
Items mentioned in the above screencast:
The Citigroup reverse stock split. (Crossing Wall Street)
Shrugs all around for the Citigroup news. (Dealbreaker)
More dividend hikes are coming. (Deal Journal)
What effect will the Citigroup news have on high frequency traders? (Zero Hedge)