This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

AIM Value Fund Plans 3-for-1 Share Split

The large-cap (AVLFX)AIM Value fund will split its shares 3 for 1 on Nov. 10, AIM Funds announced Thursday.

That means the broker-sold funds' shareholders will get three shares for every one they own at the close of business that day. The move, which isn't a taxable event, won't raise or diminish the value of a shareholder's investment in the fund because the fund's net asset value, or share price, will be divided by three accordingly.

Although some investors might avoid funds with a high share price -- the fund's Class A shares closed at $42.62 on Wednesday -- a fund's share price is neither inherently positive nor negative. A fund's price is based on the underlying value of the stocks in the fund's portfolio. In other words, no matter what a fund's share price, a dollar invested will get the same return.

While some in the industry would agree that a share price above $20 can discourage investors, it's a tough case to make. The $105.6 billion (VFINX)Vanguard 500 Index fund, the largest fund in the nation, had a $126 share price as of Wednesday's close.

Although splits for shares of a company's stock don't have any bearing on a company's actual value either, the argument for stock-share splits is better: Since stocks often have to be bought in round lots, reducing a stock's share price makes it more accessible to modest investors. But this argument doesn't work for funds, where investors buy dollar amounts, not blocks of shares.

See this Dear Dagen column, With Mutual Funds, Splitting Shares Is Splitting Hairs, for more on share splits.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs