Applied Materials No-Politics Thread (AMAT) Message Board

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Technology Stocks : Applied Materials No-Politics Thread (AMAT)

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To: Big Bucks who wrote (10234)	6/7/2004 12:10:40 PM
From: Kirk ©	Read Replies (1) of 25522

You are answering a different question than the one I asked. I asked if you thought WEB would sell half his shares of Coke if it split its stock. PERIOD. You gave a bunch of reasons of why WEB bought Coke in the first place. Yes, SOME institutions might decide to sell or take profits in a stock AND it would probably come at periods of new highs when a stock was most likely to announce a stock split. I believe companies split their stocks to attract new investors by bringing it down to a price more will consider buying it at. Perhaps it is a marketing and PR expense? At the very least, a stock split helps liquidity which is a benefit to the stock. So... the supply / demand effects you speak of can easily be offset by the liquidity and affordability effects I write of. Net-net, for S&P500 type stocks, I think they are a wash. Kirk

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