But wouldn't it be much cheaper to cop apple after the stock split? what am i missing here?
My understanding is, say a stock is trading at $100/share. You buy today for $100 and get one share. It splits 4 to 1, you will end up with 4 shares for $25 each.
If you wait till after split you would buy 4 shares for $25 each anyway.
But people here believe that the price will be driven up before split as people are buying up news of split, thinking lower price will attract more investors. For example Tesla is up 7% on news of split.
- on a side note, kicking myself for not buying Tesla at $200/share. Might have been able to retire in ten years if people are right about 10k/share prediction by 2030.