What would a Crypto-Currency split look like? BTC / BCC
History has to repeat itself somehow, someway. Bitcoin Cash will be disturbed in exchange for the REAL Bitcoin. So in the next 5-years Bitcoin supply in circulation will be diluted by Bitcoin Cash and the real Bitcoin will be hoarded. The USD is losing its purchasing power every second of the day. The USD is in 60% circulation of the world currency ---and the world DON'T want it no more because its WORTHLESS .. that is why we see the boom in Bitcoin.
Well, let's first see what a 'Stock Split' looks like ...
What is a Stock Split?
A stock split is when corporate action in which a company divides its existing shares into multiple shares. Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, because the split did not add any real value.
Let's see the most common stock splits...
The most common split ratios are 2-for-1 or 3-for-1, which means that the stockholder will have two or three shares for every share held earlier.
Hmmmm..... 2-for-1 Stock Split? Would that be Bitcoin Cash?
In the U.K-- also known as a "forward stock split." ., a stock split is referred to as a "scrip issue," "bonus issue," "capitalization issue" or "free issue."
Let's run the numbers 'Stock Split'
For example, assume that BTC Corp. has 20 million shares outstanding and the shares are trading at $100, which would give it a $2 billion market capitalization. The company’s board of directors decides to split the stock 2-for-1. Right after the split takes effect, the number of shares outstanding would double to 40 million, while the share price would be $50, leaving the market cap unchanged at $2 billion.
Why would a company want to do a stock split? For a couple of very good reasons:
First, a split is usually undertaken when the stock price is quite high, making it pricey for investors to acquire a standard board lot of 100 shares. If BTC Corp.'s shares were worth $100 each, an investor would need to purchase $10,000 to own 100 shares. If each share was worth $50, the investor would only need to pay $5,000 to own 100 shares.
Second, the higher number of shares outstanding can result in greater liquidity for the stock, which facilitates trading and may narrow the bid-ask spread.
While a split in theory should have no effect on a stock's price, it often results in renewed investor interest, which can have a positive impact on the stock price. While this effect can be temporary, the fact remains that stock splits by blue chip companies are a great way for the average investor to accumulate an increasing number of shares in these companies. Many of the best companies routinely exceed the price level at which they had previously split their stock, causing them to undergo a stock split yet again.
When a company issues new shares to sell to the public, the price will go down. Though why this is happens is often misunderstood. The new stock price will also reflect how effectively the market expects the company to turn the new cash into value.
(CREDIT FOR IMAGE : http://www.nasdaq.com/article/berkshire-hathaway-sold-2-billion-of-wal-mart-stock-time-for-you-to-sell-too-cm737469 )
STOCK SPLITS AND THE RESULTS:
Wal-Mart, for instance, has split its shares as many as 11 times on a 2-for-1 basis from the time it went public in October 1970 to March 1999. An investor who had 100 shares at Wal-Mart’s IPO would have seen that little stake grow to 204,800 shares over the next 30 years.
