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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: dacoola who wrote (57638)6/29/2000 11:21:45 PM
From: If only I'd held  Read Replies (2) of 122087
 
It would seem to me that traders would chase a deal like that. Who is doing this if you don't mind me asking. I would guess the float increases, but the total outstanding shares stays the same....and the price of the stock stays the same. A reward for being a shareholder?? If you had one share of a stock, on the divident, you would have 2. That's a double...right?

Bottom line though, is that it is using the companies stock, which is considered currency. But it doesn't cost the company any cash. Pretty creative way to boost the price of your stock. The boost is the squeeze. Supply and demand.

Anyone want to counter me on this?
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