Comments by "kazedcat" (@kazedcat) on "Jim Cramer breaks down the purpose of stock splits: They're good for young, new investors" video.

  1. It depends in which mathematics. Buying 1 share worth 3000 versus buying 10 different stocks worth 300 each share. You are spending the same amount of money but the second option you are 10 times more diversified. When you assume zero risk then the first option looks the same to the second option but factoring risk the second option is mathematically better. Your expected return is better with the second option.
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  2.  @epemsley3787  Mathematically "The company you believe in" should not matter. If we are going to include human psychology then apply it the same to stock splits. Also what you believe does not affect the fundamentals of the compnay. And even if the company have good fundamentals it could turn out that the executives are doing something illegal that would hurt the stock price. It is impossible for a shareholder to know 100% that there is zero risk in a company.
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