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Technology Stocks : America On-Line (AOL)
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To: KailuaBoy who wrote (32407)10/7/1999 6:36:00 PM
From: FlameMe  Read Replies (1) of 41369
 
OK. I think I understand your question. You are right about Scenario 2, a stock split only gives more shares to the shareholders. It has nothing to do with a deal.

Under Scenario 1, if they issued new stock and bought a company with it, then yes, you would now own a smaller percentage of the company because there are more outstanding shares. However, the company should be worth a lot more because they just bought a company with all their assets, etc.

Not sure if this answers it or not :-)

Regards,
Ross
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