Latest / The Curve / RTC44: What are stock splits + are they red or green flags for investors?

Transcript

RTC44: What are stock splits + are they red or green flags for investors? · The Curve

• 0:00
  Welcome to the Curve Podcast, a conversation for women who want to learn more about money,
• 0:06
  their money for the future they want to have. We're all busy in the pursuit for financial
• 0:11
  confidence and increasing your wealth should be a simple one. This podcast is for women to learn
• 0:17
  about investing in a non-scary or intimidating way. With short episodes, you'll have time to learn,
• 0:23
  digest and understand everything to do with the world of investing. So thank you for being here
• 0:29
  and for listening. Because together we really can raise the curve.
• 0:35
  Okay. Hi. I actually have to start by confessing something really naughty that I did
• 0:43
  and it's sitting to my left and I feel so guilty about it. So long story short. No, it's not
• 0:49
  like you've been there would not be something to feel guilty about either way. I in the weekend,
• 0:55
  so when I moved here, when I moved over to London, I brought almost all summary clothes. It was
• 1:00
  as if I thought I was moving to the Bahamas and it's now freezing like it's fully winter. And I
• 1:06
  thought, you know what? Fuck it. I'm going to treat myself. I deserve some like cute clothes.
• 1:12
  So where did I go? But to the acne store. And I spent no, babe, I love that you're encouraging
• 1:22
  us. I'm not on brand. Sorry. Sorry. I spent over a thousand pounds. And now I just, I came home and
• 1:33
  I was so weird. I stripped naked and made myself dinner because I felt so guilty about my clothes
• 1:38
  obsession. So did I like multiple things from acne? I bought this top. Cute. I bought a card again.
• 1:46
  I bought a hoodie and a shirt. Is it topsy through? Yeah, can you see my naples? Yeah.
• 1:53
  I, um, I probably would wear a bra as a public. Um, anyway, I'm feeling really guilty. I can't
• 2:02
  believe you're encouraging that. I'm sorry. No, but you need winter clothes. You don't want to
• 2:07
  freeze. I get it. I get it. Oh my god. You're hilarious. It's an investment.
• 2:17
  Do as I say, not as I do. Oh my god. I'm hilarious. I must admit though, boots last forever.
• 2:24
  Like I've still got acne boots from like seven years ago. Whereas some Zara boots
• 2:30
  are already falling to pieces and I've only bought them. I've only had them for like six months,
• 2:34
  eight months. Yeah. So I swore someone posted something the other day and it was like, it sucks
• 2:39
  because people who kind of forward expensive clothes end up spending more over the long run because
• 2:45
  if, say they have to buy new shoes every week or month or whenever for $10 opposed to $100
• 2:51
  once every five years, it actually ends up being because they do fall apart. I mean,
• 2:55
  I'm not trying to justify my outrageous spend unnecessary. It will be taking some stuff back.
• 3:02
  But it's things that I would have for a long time. It's not like a flash in the pan. I mean,
• 3:08
  the shirt is like a blue shirt that I literally could wear for my whole life. And this is probably
• 3:15
  not so much, but you don't buy a lot for yourself, babe. No, I don't. I know. But I'm not like
• 3:21
  earning enough money to spend down clothes. You know, like I'm stressed about paying for my exercise.
• 3:27
  So like to go and spend that much money on clothes was just like ridiculous. Anyway, that's my guilty
• 3:33
  admission. Hey, well, I actually bought some clothes in the weekend as well. And I needed
• 3:38
  it. You exercise, yeah, I've been needing to go to Luliman forever. And I went in there and there
• 3:42
  was this lovely lady helping me. And she was like, I was like, hey, do you have this inner
• 3:46
  bigger size? And she was like, oh, you're from the curve. I was like, I was like, oh, I was just
• 3:53
  always get so embarrassed. And I'm like, yeah, yeah, yeah, thanks. And then she obviously
• 3:59
  when got me another size, but I was just like, I was like, why did compliment? Yeah. And I was
• 4:05
  like, why didn't they be like, oh, my gosh, do you enjoy listening to us? I don't know. But I just,
• 4:09
  I'm the worst social person like that. I just like, yeah, okay. Yeah. So must get better at a
• 4:18
  response to that. So apologies to that girl. She called me off guard and I freaked out.
• 4:25
  Okay, finance, finance, back to finance. So today we are talking about
• 4:33
  stocks, blitz. So we're going to talk about, okay, why they happen. Well, firstly, what they are,
• 4:40
  what the impact is as an investor. And it's really good to actually talk about this now because
• 4:44
  there's been a ton of stocks blitz this year alone. So we've got heaps of fun examples too. Oh,
• 4:51
  and there's your nipples. Yep. So I know, I'm going to, I just realized I'm wearing this air
• 4:56
  can be top that I probably want to return and I'm starting to sweat in it. I'm not going to be
• 5:00
  able to return it. Oh, my God. Oh, you know, anyway, so, okay, stocks blitz. I have been getting
• 5:07
  lots of emails out there. So if I've invested in stake or and hacked or shares these,
• 5:13
  are depending on, because I've got shares in different platforms, if I get an email, so say it
• 5:19
  might be a New Zealand or Tesla or whatever, and I'll get an email being like, hello, you're
• 5:24
  eligible for a stock split. I'm like, well, the house is a stock split. They're like, you can buy
• 5:28
  blah, blah, blah. And I'm like, I wish, I wish it was easier than that because your email is too
• 5:33
  confusing for me. Oh, they always are honestly like, we get a lot of emails as well saying, hey,
• 5:39
  I've just got this from my broker. I've got this from an investing pamphlet or I've got this from,
• 5:44
  and it's just, even I'm sitting there going, what? And I have to like read it again and again,
• 5:49
  I'm like, God, why? Why? It's frustrating. Nice to see your email like this recently. I was like,
• 5:54
  hello, I thought it an email, actually, what was the company I came from, remember? Meridian. Meridian.
• 5:59
  Yeah, yeah. And they were, I'm sure it was a stock split, but it was just a too long email that I
• 6:04
  avoided it and sent it to help. No, it was about voting. Oh, right. Well, you can tell,
• 6:08
  obviously, reading my emails. Yeah. Just the default is forward to work. And it's an important
• 6:14
  is it not? It's a screenshot text. Hello again. Help me again for the 24 times this morning.
• 6:24
  No, so stocks, but so yes, they do happen very often. And we have seen a lot of them happen
• 6:30
  this year, but the good thing is you don't have to do anything. So effectively, what a stock split is,
• 6:37
  is it is when a company is effectively splitting its shares. So if you own 100 shares of a company,
• 6:46
  and they do a stock split, that means that you're going to end up with more shares at a lower price.
• 6:51
  So effectively, the price decreases, but the number of shares increases. And the value of the
• 6:57
  company stays the same. And the value of your portfolio stays the same. So we'll go through
• 7:02
  an example also that it kind of makes a bit more sense. But so say you had 100 shares of
• 7:10
  Sophie Corp. Oh my god. I said it was called Sophie Corp. I love that. Booming business.
• 7:17
  And you're doing very well. It's doing very, very well. I've heard the CEO is really cool.
• 7:23
  I heard she was see through tops, but you know, that's how good do my nipples look though.
• 7:34
  So back to finance, back to finance. Sorry. So distracting. So you have say, say I own 100 shares of
• 7:44
  Sophie Corp and your shares are trading at $200 a year. So the value of my portfolio,
• 7:49
  of my investment in your company is $20,000. So that's 100 shares. $200 each is $20,000.
• 7:58
  Now I'll slow it out and hold on 100 shares at $200 a year. Got it. It's 20,000 yet. So now because
• 8:07
  your share price is $200 and it's done fantastically well, you're like, you know what? I'm going to
• 8:12
  do a stock split. And the reason you're doing a stock split is because you're like, look, there's
• 8:16
  actually probably people out there that can't really afford to buy one share. They can't afford to buy,
• 8:22
  to pay that $200 to get one of my shares. And so I want to make that more accessible and cheaper
• 8:31
  for more people. So there's more investors that want to buy my shares. It's basically to open the
• 8:36
  door a little bit to people who might not have considered buying those shares otherwise. Yeah. Or they're
• 8:40
  like, look, it's the share price is done really well. If I do a stock split, it's not changing the
• 8:46
  value of the company because you're just you're splitting the shares that are already there, but they're
• 8:50
  all they're all at a lower price now. Instead of having a low number of shares and a high price,
• 8:56
  you've got a high number of shares at a low price. So you've got a hundred shares of Sophie
• 9:02
  Corp at $200 a year, which is $20,000. So that's your investment, $20,000 of this company is what
• 9:08
  you own. Now they've announced they're going to do a two for one stock split, which means they're
• 9:13
  going to split every share by two. So you're effectively doubling the shares that you will own. So you
• 9:21
  you had a hundred, now you've got two hundred, but the price also changes as well. And so the price
• 9:27
  is divided by two. So the shares are times by two. The price is divided by two to ensure that the
• 9:34
  value stays the same. So you've now got two hundred shares, you had a hundred, you've got two hundred
• 9:40
  and now those shares are at $100, not $200 anymore, but when you're times those figures together,
• 9:49
  you've still got $20,000. So your value in that company that your investment in that company
• 9:55
  doesn't change. It's just the makeup kind of changes if that makes sense because you've got
• 10:00
  a different number of shares now at a different price. So it might be like say you bought this is
• 10:06
  the weirdest analogy, but say you bought lots of jams from the supermarket and you spent $50 on
• 10:12
  jams and you got three large pots. One was strawberry raspberry and one was eight pre-cut.
• 10:19
  Rather than you've still got the exact same amount of jam however they've been split into little
• 10:25
  miniature pots. So you've got $50 worth of jam, but it's just in many pots rather than a giant one.
• 10:30
  You've got the same amount of something, it's just kind of made up in a different format.
• 10:35
  It's like you're cutting one pizza into 20 slices. It doesn't create more pizza, it's just
• 10:41
  more slices of that. You've still got the jam. I like the thinking though, yeah, jam,
• 10:46
  way more interesting. So we get asked a lot, okay, well, doesn't make any difference if I buy
• 10:53
  the shares before or by them after. It doesn't make any difference because the value is the same
• 10:57
  and the great thing is you don't have to do anything. It just happens. You'll just wake up one morning
• 11:03
  and you'll have your portfolio where you're adjusted for the number of shares in the price.
• 11:09
  You don't have to apply for more shares or tick a box or anything like that. It's literally just a
• 11:17
  cycle digital change in, digital transaction, I don't know, but it doesn't, you don't have to
• 11:22
  complete anything. You're not going to miss out. Can I ask the reason why people do it? Like what's
• 11:26
  the point? Because if you've got, yeah, I mean, I understand you're saying you want to bring the
• 11:30
  share price down so that it encourages other investors to buy it because the share price looks cheaper,
• 11:36
  but what's actually the point? Yeah, and it's quite contradictory because we always talk about like,
• 11:41
  oh, if a share price is high, that means a company's doing well, you know, so it's like why would a
• 11:45
  company want a lower share price then? It kind of doesn't really make sense. Well, yes,
• 11:51
  the first point is that it makes it more attractive to more investors. So now that's a lower price,
• 11:57
  more people can buy it. And this is quite interesting because we can now buy fractional shares these days.
• 12:03
  That's what I want to say, like you can buy a tenth of a share on stake, you know, you don't
• 12:10
  have to actually be buying the entire share. So I'm kind of like, what is this idea redundant?
• 12:15
  No, so there's there's other reasons. I mean, the retail investors, so people that use
• 12:20
  stake, so mum and dad investors, you and me, like people that use stake shares is hatched to buy shares,
• 12:27
  quite a small portion of the overall. Oh, of course. Yeah. So we like to make it really important.
• 12:36
  Well, yeah, we are in a number of ways, just not that way. But yeah, so it's,
• 12:42
  we're a small portion, but also the other thing is that it improves liquidity. So liquidity is just
• 12:50
  how easy it is to buy and sell shares. So if a company only has 10 shares, that will have very low
• 12:58
  liquidity. Wouldn't it be the opposite though, because there's less of them so the demand is high,
• 13:03
  and therefore more people would want to buy them. It's more liquidity is like it's how easy it is
• 13:09
  to buy and sell those shares. So if I, if a company didn't really trade a lot or didn't have a lot
• 13:15
  of shares available to the public, if I was then to go and sell my shares, it'd be hard to find
• 13:21
  someone to buy them, because there's not a lot of people that own shares. There's not a lot of people
• 13:26
  buying and selling them. So, but it like contradicts what you say in terms of if there's less of something
• 13:32
  that demand is higher, you know, like as in, if there's more buyers, but there's less things to buy,
• 13:38
  it drives prices up. It is to a point, but if I was a big large fund manager and I wanted to buy
• 13:45
  a position in a company that was a really small company with low liquidity, I might end up buying
• 13:51
  20% of that company. And that's, I don't want to be in a position then if I need to sell to try
• 13:56
  and find an investor that needs, that wants to buy 20% of that company. So companies with a lot of
• 14:01
  liquidity are your Amazon, your Facebook, your Google's, you're never going to have an issue selling
• 14:07
  your stock, whereas companies with low liquidity are usually smaller companies or companies where
• 14:13
  the founder owns a lot. And I'm not saying it's a bad thing, it's just, you know, to get, for a company
• 14:18
  to get into a main index, so like the S&P 500 or the the ASX 200, NZX 50, all those main indexes,
• 14:26
  you also have to have a little liquidity. So this is a kind of one reason why a company might
• 14:32
  do a stock split. You know, they maybe they IPO'd a number of years ago with just a handful of
• 14:37
  shares and their share prices got ridiculous and they're like, you know what, we want to improve
• 14:41
  our liquidity, we want to do a stock split. So we want to improve the number of shares.
• 14:46
  So that's one reason. The other reason is that it makes, it makes stocks appear more affordable.
• 14:52
  So we were kind of talking about this now that, you know, Sophie Corp's shares have gone from $200
• 14:56
  to $100, there are a lot more affordable. And the last one is that psychology, like just the idea
• 15:04
  that people think they're getting things cheaper, it's actually not. Yeah, exactly. And it's kind of,
• 15:10
  it's the illusion of getting something for nothing. It's, it's more, yeah, it's more an illusion,
• 15:15
  it's not really, it's not that much different. But I mean, my mom, she used to be like, I'd be like,
• 15:20
  oh, mom, you should, you should look at this or have you invested in this or she'd be like, what do
• 15:25
  you think of this company? We'd be talking about companies to invest in. And I'd mention one,
• 15:29
  and, you know, Amazon, for example, and she'd be like, oh, $2,000 a share, absolutely not. You
• 15:35
  know, like, and that's just like, oh, that is so expensive. And I'm like, yes, but it's expensive
• 15:42
  because it's done well over a number of years. And so there's two camps, some people will be like,
• 15:48
  oh my gosh, it's done so well. And there's people that are like, absolutely not as so expensive. So
• 15:52
  I guess the more, it's still the same company at the end of the day. So if it's, if it's still
• 15:57
  a large share price, yeah. The people who know that it's still a good company and understand the
• 16:02
  stocks, but and understand that it's not devaluing the company or the share price or anything
• 16:07
  would probably be the ones that are not like I lean like your mom. You know what I mean? It would be,
• 16:11
  it would be like the islands of the world that are like, oh, good goodness. And my soul, she is
• 16:16
  a now only $500. I'm going to buy up lunch there. Yeah, you know, I was to someone who understands it
• 16:23
  is like, oh yeah, caring. Yeah, she would probably be like, oh, they just have their share price,
• 16:29
  absolutely not. But then the other reason, which I actually realised after doing a bit of research
• 16:38
  was that many public companies, and particularly in the US and large tech companies do this a lot,
• 16:44
  is that they offer stock to their employees as part of their salary, their enumeration,
• 16:49
  their compensation plans. So just so cool. I think that makes so much sense. Yeah. And so they've
• 16:54
  got ownership in the company. They're, they're working each day, you know, helping the company grow
• 16:58
  and they're actually getting their benefit in the shares that they own. But when you start getting
• 17:02
  shares that are $2,000 each, that's, it becomes a bit tricky with putting that into, into a bonus,
• 17:09
  you know, because you might be only wanting to give someone $1,000 for shares. So therefore,
• 17:14
  you're giving them half a share. So it kind of, it makes it easier to be like, hey, look,
• 17:19
  we'll give you two shares or they won't give that a few shares. It's a dollar value rather than the
• 17:25
  number of shares. It might be like, you're getting $5,000 with a stock, opposed to you're getting five
• 17:29
  stocks that it each with. So there's more control internally. It can help them, it can help companies
• 17:35
  kind of manage those, those benefits that they give to, give to employees. So because there's like
• 17:39
  a lot of companies like, I know Google and a lot of those big companies that are listed have stock
• 17:45
  as a part of their packages, like a friend of mine who worked at Google in Sydney. When she left,
• 17:50
  she checked, checked in, cashed in. What's the word? Cashed in her, her stocks and she had like $80,000
• 17:58
  worth of Google shares. I don't know. I don't think people understand how valuable that is.
• 18:05
  It's valuable when it's going up, when it's going down, it can have the opposite effects, because
• 18:10
  this is why it's about the negative. Yeah, don't worry, you've got me here to remind you
• 18:15
  the little negative message. But it's also a way of when new companies start that they might not
• 18:26
  have enough to pay staff. So they're like, hey, look, you know, one team, one dream. We'll give you
• 18:32
  80% of your salary is compensation. 20% is actual money. Sorry, 80% is stock. 20% is actual money.
• 18:41
  And then if you get in the early days at like the Facebook's and Amazon's, you're like, should
• 18:44
  yeah. Also, going up and up, but it's also like, remember back in the day when there'd be people
• 18:52
  online that were creating websites and stuff and people couldn't afford to pay them. And they'd be like,
• 18:56
  I'll give you some Bitcoin. And they'd be like, oh, God, all right, give me 10 Bitcoin.
• 19:01
  And then now 10 Bitcoins worth what like so much money, $1 million or something ridiculous.
• 19:08
  In fact, maybe we need to use this tactic, babe. Like if we start hiring people to help us,
• 19:13
  like you want to invest in the curve, we actually aren't making any money.
• 19:18
  But here's a 100% stock.
• 19:24
  Yeah, yeah. I guess why I have so many happened this year. It's really off the back of these crazy
• 19:31
  share prices that we've seen go up and up and up in a lot of these tech companies. So a lot of
• 19:35
  tech companies doing super well during COVID and their share prices are just getting really ridiculous.
• 19:41
  And so that's why we've seen quite a few stocks, but it's particularly from large tech companies.
• 19:46
  So I've seen Amazon. Because like, yeah, it's going to say Amazon have done it, right?
• 19:49
  Like who else have done them recently? Amazon, Tesla, Google, Shopify, they've done,
• 19:55
  these are all good ones. Yeah. So these have, I mean, they, like, I mean,
• 20:00
  Shopify's hasn't done very well this year, but I mean, they have over time done very, very well.
• 20:07
  But yeah, it's because it's usually you do see a lot of stocks, but after a market has done
• 20:12
  really well or a stock market and we did have a great year last year. So that's why a lot of these
• 20:17
  companies have done stocks, but Amazon announced a stock split this year in June, and they did a
• 20:22
  20 for one stock split. So 20 shares. So you'd wake up one morning and look at your portfolio and
• 20:30
  really go, whoa, I just got heaps of shares, but the value would be the same. We're not checking
• 20:34
  out portfolio every morning. No, we are not. Good reminder. That's their first
• 20:42
  stock split in 20 years. So that's quite crazy. They did a two for one stock split back in 1999.
• 20:51
  So Amazon, when it announced its stocks for this year, early this year, it was,
• 20:54
  its shares were over $2,700 each year. So you can see how they can be off putting people.
• 21:02
  Yeah, you'd be like, oh gosh, no, that's so high. And it would be completely off-putting.
• 21:07
  And once they did the split, the shares were like $100 each. So much more affordable, much more
• 21:14
  attractive for a lot of people. And the value of the business doesn't change at all. Amazon still
• 21:20
  the size before and after the split. And it's shares, I think, it's kind of $120 now.
• 21:26
  But it's done four splits over its lifetime since its IPO. So in the IPO in 1997 or so ages ago,
• 21:32
  also those who don't know what IPO is, it's essentially just when a company goes
• 21:36
  public for the first time. So when they first like offer shares to investors.
• 21:42
  Yes, yeah. And the reason companies also do stocks splits is that their history has shown and
• 21:48
  studies have shown that companies tend to do, companies share prices tend to do better after a
• 21:53
  stock split. Because of all the reasons we've seen, they're more attractive, they're more affordable,
• 21:58
  you're opening yourself up to a whole lot of new investors that might not have bought an Amazon
• 22:01
  share at $2,700. But a much more likely to buy Amazon share at $100. Even though there's
• 22:08
  completely no difference to before, after the company is exactly the same, it's just the
• 22:15
  perception that it's now better and you're opening up your doors to a whole lot of new investors.
• 22:20
  So companies do tend to do better. Question. So does that mean if you see a stock split? So say,
• 22:25
  for example, you have invested in Amazon and you're like, I still believe in the company,
• 22:29
  still really want to invest in it. If they do a stock split and you still feel strongly that the
• 22:34
  outlook of that company, you would be probably quite clever to buy more. Because generally,
• 22:39
  traditionally, stocks splits make share price go up. I guess the majority of companies that do
• 22:45
  stock splits have seen their share prices go up afterwards. But there's so many other factors that
• 22:50
  you have to consider before making investment. But it's a green flag, yes, yeah, definitely.
• 22:55
  So it's kind of a box tick. So yeah, if you were waiting in the sidelines and you were like,
• 22:59
  I'ming an iron about it. And then they announced a stock split, then yes, a lot of companies.
• 23:06
  A lot of stocks. Yeah. Yeah. Yeah. So and all these companies, Amazon Tesla, Google, Shopify,
• 23:15
  well, Amazon Tesla and Google have all done multiple stocks, but it's over their life.
• 23:20
  You know, I mean, Shopify, they did their first one this year, which was a 10 for one stock split.
• 23:25
  So that's the first since they went public and they didn't do well after that. And they haven't
• 23:29
  done well. No, I mean, they haven't done well this year because there's been that reversion back to
• 23:34
  everyone. You know, there was that big run up and even buying online, using Shopify, e-commerce,
• 23:40
  and then their share prices kind of have has tanks since then. So there are, it's not all
• 23:46
  all companies that do stocks, but do well. That's not the case. It's like the majority do,
• 23:51
  and it's usually because if you think about it, their share prices have done really well,
• 23:55
  because obviously the business is doing well. So then if you split the stock,
• 23:59
  the company's still still doing well and nothing's changed with the company necessarily.
• 24:04
  So it's usually companies that are good in the first place that do the stocks, but it's just so
• 24:10
  annoying that it's not a one size fits all. There is never in finance or investing either.
• 24:17
  Now, every time they do a stock split, everybody, the she is going to do well. It's like also,
• 24:23
  but maybe no, and also read the fine print. And also, yeah, like it's so annoying.
• 24:29
  Welcome to the May world. Yes, this is why I have a lot of great ears. So if I were to tell you
• 24:37
  the company that's done the most stocks, but in the history of the US stock market, what would you
• 24:43
  ask me? Oh, can I guess? Yeah, it's like, oh, I'll give you a clue. Oh, no, you can guess.
• 24:50
  Like am I getting a clue? I'm confused.
• 24:57
  My orange. Oh, no, close, but no. Yeah. What's orange? That's the clue. Oh, it's orange.
• 25:04
  I think the company's orange. It's orange. No, no, orange is the cue. No, it's orange.
• 25:09
  Oh, orange is the cue. Oh, God. Orange, no, hold on, let me think.
• 25:15
  Orange, orange, orange, orange, orange, orange.
• 25:19
  Like, or banana works as well, you know. Oh, God.
• 25:23
  Fruit this. No. Oh, my God. People are going to be listening,
• 25:27
  being like screaming at their, at their full. Apple apple apple apple. Oh, my God.
• 25:32
  Shit. Sorry, that took so long. Oh, gosh. Orange is the key. Like think of
• 25:37
  as orange labels. Oh, no. Orange logos. You threw me.
• 25:43
  So they have done five stock splits over their life. And if you owned a thousand shares
• 25:51
  back in the day of Apple, you would have due due due due just to the stock splits,
• 25:56
  you'd have over 200 and 24,000 shares today. So that's how many times they've split the stock.
• 26:04
  You'd have a thousand, your thousand shares would have gone to 224,000.
• 26:09
  So like, if you hold on for the whole, I mean, this is like over 30 years, but
• 26:14
  that's quite amazing that, you know, just how that is amazing to split their stock. How many shares
• 26:19
  they've created by just splitting their stock? So yeah, quite, quite an amazing fun fact for you on
• 26:25
  you. Can companies ever run out of shares? Like, can they ever, they're like, oh, no, again.
• 26:32
  Well, you just create more. I mean, yeah, just keep creating more.
• 26:37
  Is it a reach back normally? So it depends what they're raising it for. So if they were
• 26:42
  issuing stock to buy a company to accelerate their growth, then people will be really supportive
• 26:49
  of that. If they were just issuing stocks, issuing new shares because they need more money because
• 26:55
  they're got too much debt for their struggling, then that's not a good sign. And we saw a lot of
• 27:01
  companies do that during COVID, they were like, share to my god what the hell is happening with the
• 27:05
  world. Like, we need more cash just as a safety net, you know, maybe our balance sheet is a very
• 27:13
  strong. We've got lots of debt. We just need money ASAP. You kind of go into panic mode. That's when
• 27:20
  that's when investors get pissed off. But then if the companies struggling and you're already
• 27:24
  shareholder, you're like, well, if they don't support it, you want them to have a money. So you're kind
• 27:28
  of stuck in a rock and a hard place. So it's a definite, it's more of a case by case basis. It's not a
• 27:33
  red flag green flag scenario. It's a bit more mixed when they're issuing stock. Whereas stock splits
• 27:39
  are very much in the green flag camp. So, yeah. Are there any many shares in your portfolio that
• 27:46
  have done stock splits over their time? Yes, there's a few of them. I kind of own Apple,
• 27:52
  and I own Amazon. I remember I did wake up, I literally woke up and I was like, looked at my
• 27:57
  Amazon stock and I was like, what the fuck? And I was like, oh, stock splits. I was like, because
• 28:05
  I'm sure I didn't have this many shares. And I'm sure I didn't have this lower value.
• 28:09
  You know, like it's, and it's crazy when you're actually researching a company and you're like,
• 28:13
  hang on, I'm sure the share price was a lot higher before. I thought you're like, there's
• 28:17
  something going on. But then you would have to be certain that that's not, it's not dipping
• 28:24
  because it's just lost value or people don't see value in any way. You have to be quite aware of
• 28:30
  that. Yeah, so you can just Google, like if you are concerned that your companies,
• 28:34
  that company you invested in has done a stock split and you haven't been following it,
• 28:39
  haven't been aware of it. But then you can just Google, you know, has, so if you've caught
• 28:42
  done a stock split, or you will be able to see it on Yahoo Finance. But they kind of adjust it
• 28:51
  all the way back if that makes sense. So you won't see this kind of this big drop in the share price.
• 28:56
  Though they, they adjust it. So if you're looking at a graph, you're not going to see this big drop
• 29:00
  in the share price. You're going to see that it was all adjusted all the way back to, yeah. So,
• 29:05
  so it doesn't create kind of red flags for people going, oh, what happened, you know, back in June
• 29:10
  2020. Yeah. Yeah. So yeah. But it is, it's a really common thing and we'll, we probably, I mean,
• 29:17
  we might not see a lot of it happen going forward, you know, depending on what happens with
• 29:22
  stock market. But yeah, a lot of companies that have done well, you're tend to, tend to do stocks,
• 29:28
  but as a kind of a green flag for investors. Cool. Or a tick, a tick of approval. Thank you for
• 29:34
  explaining that. I also just before we wrap this up, wanted to remind anyone listening,
• 29:40
  if you enjoy this podcast and if you think that your friends would enjoy it, either share it with
• 29:45
  them or we've recently figured out that rating and like writing reviews on podcasts really
• 29:51
  helps you boost up the charts. So if you happen to be enjoying the podcast, please give us a,
• 29:58
  it's like obers. If you like your Uber driver, give them a five star, you know,
• 30:03
  if you want to see more of these nipples, just, you know, right, right, the podcast.
• 30:09
  That's actually a visual, which you'll have to find on our Instagram, at the curve,
• 30:14
  actually we've changed our handle at the curve, underscore, underscore, underscore. It's so
• 30:19
  hard to say, oh my god, I have a slot on radio and they were like, what? So it's four, so it's
• 30:25
  underscore, underscore, underscore, I was like, oh my gosh, I was like, this is going to be a nightmare.
• 30:29
  Because when I'm over in London and I say to people, oh look, this is our Instagram. And then they
• 30:33
  are like, what's the curvans? And I'm like, oh, it's not the curvans, it's the curvans. But if you're
• 30:39
  not from New Zealand, you don't know. So we have to be international, babe, you know, I reckon we
• 30:44
  do at the curve international, at the curve global, global, yeah, at the curvans. Like actually,
• 30:51
  Vic found the person who has the curve handle, which is like the curve. It's just that. And she goes,
• 30:56
  hi there, just wondering if they've posted not once by the way, there's not one host. Hi there,
• 31:01
  just wondering if we could please buy your handle. We love it. Thanks for something. I was like
• 31:06
  optimistic. That person's created in the count, like, never logged in again and probably will
• 31:11
  never see our message. But I appreciate the effort. Okay, well, you're already gone. So
• 31:18
  no, I'm not sorry, I'm just going to text. Okay. Fabulous episode. Love you. Great time.
• 31:24
  We'll wear a brine next time if it's distracting. But I don't think it is that bad, is it?
• 31:29
  Should we both just go topless? Should we just go topless at night?
• 31:32
  All the nipples. Yeah, that will make us go viral, surely. Rating ourselves.
• 31:38
  Yeah, like your books might, might more be. Thank you so much for joining us for today's
• 31:44
  episode of Raising the Curve. Please subscribe and leave a review on what ever platform you're
• 31:48
  listening on. And we would also love for you to share this podcast with anyone you think would
• 31:52
  benefit from it. For more information about the curve and how you can learn more, head to the curve
• 31:58
  dot com dot in z or find us on socials at the underscore curve in z.