Ubisoft offering to split (s)hares at annual meeting


Ubisoft is planning on putting a two-for-one stock split to a vote at its September 22 annual meeting, Reuters reports. The French publisher's shares closed at €66.64 last Friday.

We checked with analyst extraordinaire Michael Pachter to find out what this stock split means. Poking his head up from charts and graphs – flicking his abacus a few times just for show – he simply said, "It's not really a big deal." Pachter explains that commissions are higher if an investor buys fewer than 100 shares so: 100 shares at €65 requires €6500 in funds, or around $10,000. Since individual investors don't like investing that much in a single stock, by splitting the stock, the cost of 100 shares is cut to around $5000.

That explained, Pachter turned his attention with giddy anticipation to the crystal ball he just received from Mystics 'R' Us in Eastern Europe and concluded, "It's really that simple."

This article was originally published on Joystiq.