How do break ups create so much value?
Many times when stocks break up, both of the seperate companies rally 30-50%. I don't get this
maybe it's better not to have one CEO running two businesses,but often the seperate businesses are almost completely separately run other than for financial reporting purposes, so that can't explain so much of a jump
i understand that seperate investors want to invest in seperate sectors, but it's hard to see somebody thinking two companies are worth so much more when they have two ticker symbols than when they just have one
to me it seems like an investor is willing to pay $15 for having two five-dollar bills rather than a 10