I cannot imagine that no one has asked this already... but I can't find it, so here it goes: Suppose I have a number of shares of Alibaba, and the company splits into 6 separate parts. What happens to my current share? If that is not known yet, what is likely to happen?
Another question. Suppose I just hold onto my share, and the other IPOs become available alongside the regular share. What do I gain from that split?
It even seems disadvantageous to me. Why would anyone buy the regular share anymore? It feels like I would be the one losing out with the regular share.
Let's compare it to Volkswagen. Suppose you buy Volkswagen shares because you know that Porsche is part of Volkswagen and therefore a cheap share in your opinion. Then Volkswagen decides to list Porsche separately in the market. In that case, you would no longer have any advantage from owning the Volkswagen shares, and you would be more or less forced to sell VW (possibly at a loss) to then buy the less attractively priced Porsche share.
Thanks for your input!
[link] [comments] https://www.reddit.com/r/stocks/comments/14f9xdq/alibaba_split_current_stock/
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