Merging | Stock Market | TORN
Merging
  •   Chrono208 [367543]Chrono208 [367543]
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    Thread created on 15:11:22 - 07/07/21 (3 months ago)
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    Last replied 17:46:32 - 09/08/21 (2 months ago)
    Let's say I had X Billion in a single stock I bought (arbitrarily) at 250.25. Now let's say I then bought a into the same stock again with another X Billion/Hundred Millions, but this time the price is at 245.25. If we were to merge the stocks in order to bring the overall base value of each stock down, is this a wise move? What if the stock merge totals to a 248.00 valuation for instance, and then the stocks price itself is currently at 249. Would this still technically be a profit, even though the price is under 250.25, or is there a hidden mathematical principle I don't understand about merging? Just trying to understand stocks and whatnot a little better... they sure avoided teaching this subject in school.
    Me? I'm just an old fashioned cowboy.
  • PT DedeSilver [2430598]DedeSilver [2430598]
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    Posted on 19:31:03 - 07/07/21 (3 months ago)
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    Chrono208 [367543]

    Let's say I had X Billion in a single stock I bought (arbitrarily) at 250.25. Now let's say I then bought a into the same stock again with another X Billion/Hundred Millions, but this time the price is at 245.25. If we were to merge the stocks in order to bring the overall base value of each stock down, is this a wise move? What if the stock merge totals to a 248.00 valuation for instance, and then the stocks price itself is currently at 249. Would this still technically be a profit, even though the price is under 250.25, or is there a hidden mathematical principle I don't understand about merging? Just trying to understand stocks and whatnot a little better... they sure avoided teaching this subject in school.
    Yes imho it is profit if you don't calculate tax coz it's the average money / share you spent that matters. Thing is $1 isn't enough to cover the tax for $200++/ share stocks.
    I did that when I bought cnc way too high. I just knew i'd be f**ked until today if I didn't double down and merge. So I did it and sold it when i got decent profit.
    Last edited by DedeSilver on 19:31:32 - 07/07/21

    Buying Ecans 20E - 30E for market value. No need chat, just start trade.

  • IMF rocko0031 [2551154]rocko0031 [2551154]
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    Posted on 11:35:53 - 27/07/21 (2 months ago)
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    Chrono208 [367543]

    Let's say I had X Billion in a single stock I bought (arbitrarily) at 250.25. Now let's say I then bought a into the same stock again with another X Billion/Hundred Millions, but this time the price is at 245.25. If we were to merge the stocks in order to bring the overall base value of each stock down, is this a wise move? What if the stock merge totals to a 248.00 valuation for instance, and then the stocks price itself is currently at 249. Would this still technically be a profit, even though the price is under 250.25, or is there a hidden mathematical principle I don't understand about merging? Just trying to understand stocks and whatnot a little better... they sure avoided teaching this subject in school.
    Yes my friend it is called dollar cost averaging(atleast thats what i say lmao)

    When u merge a 250 and a 245 . It will show bought 247.5 per share

    So when it actually hits 249

    Think of it like this

    4 profit one side and -1 on one side. I.E 3 profit

    When u merge it is 1.5*2 =3 (since 249-247.5=1.5)

    Hence profit remains same
    Last edited by rocko0031 on 11:36:26 - 27/07/21
  •   Chrono208 [367543]Chrono208 [367543]
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    Posted on 17:46:32 - 09/08/21 (2 months ago)
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    Chrono208 [367543]

    Let's say I had X Billion in a single stock I bought (arbitrarily) at 250.25. Now let's say I then bought a into the same stock again with another X Billion/Hundred Millions, but this time the price is at 245.25. If we were to merge the stocks in order to bring the overall base value of each stock down, is this a wise move? What if the stock merge totals to a 248.00 valuation for instance, and then the stocks price itself is currently at 249. Would this still technically be a profit, even though the price is under 250.25, or is there a hidden mathematical principle I don't understand about merging? Just trying to understand stocks and whatnot a little better... they sure avoided teaching this subject in school.

    rocko0031 [2551154]

    Yes my friend it is called dollar cost averaging(atleast thats what i say lmao)

    When u merge a 250 and a 245 . It will show bought 247.5 per share

    So when it actually hits 249

    Think of it like this

    4 profit one side and -1 on one side. I.E 3 profit

    When u merge it is 1.5*2 =3 (since 249-247.5=1.5)

    Hence profit remains same
    Thank you so much! That makes a lot of sense now.
    Me? I'm just an old fashioned cowboy.
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