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Pastimes : Bad investing information/advice on the net contest
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To: The Other Analyst who wrote (186)1/15/2000 7:18:00 PM
From: Edwarda  Read Replies (2) of 214
 
I think that the original thought, lost in the mists of time, was that a stock split meant an increase in the dividend and, therefore, a change in the discount rate.

However, this moment of sanity keeps getting lost....

More lately, a stock split has meant, in the absence of an increase in the dividend, simply that more people could afford to buy round lots. Joe Six-pack can afford to buy tulips when they split whatever for one.

In this posting there are multiple examples of "oops"--more afterward from me if you are interested, TOA.
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