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Technology Stocks : Dell Technologies Inc.

DELL 142.68

-2.7%

3:59 PM EST

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To: Lee who wrote (24396)	12/6/1997 2:53:00 PM
From: Chuzzlewit	Read Replies (2) of 176387

Lee, the issue of stock splits affecting the price of a stock has been studied to death. Some people have found an effect, but it turns out that the increase occurs before the split occurs (i.e., the stock is still trading at the higher value) -- so in effect the price does not act as a determinant for demand. Most people who have studied the issue of splits feel that the split is triggered by increasing stock prices -- not the other way around. Splits used to make sense when people paid more for buying stocks in odd lots, but since this differential has been eliminated, the rationale is gone. An interesting way of viewing this is to suppose that the country goes metric. We would not expect the price per lb. or per oz. to change based on the way we measure weight. Regards, Paul

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