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Technology Stocks : Lucent Technologies (LU)
LU 2.550+2.4%Dec 1 3:59 PM EST
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To: Mark Palmberg who wrote (1528)3/9/1998 7:55:00 AM
From: Rob L.  Read Replies (1) of 21876
 
I am continually amazed at the ignorance of people on SI playing the market who do not have a clue how the market works. A stock split means absolutely nothing. It is a psychological tool that companies use to attract the masses. Novice investors would prefer to buy a lower priced stock than a stock trading over 100. Naive investors forget to realize that it is the percentage gain that matters and not the nominal price of th stock. A move from 100 to 110 with 50 shares yields the same gain as a move from 50 to 55 with 100 shares. So forget about stock splits and concentrate on price movement.

It does not change valuation of a company and the record date means absolutely nothing. If you buy 100 shares today or if you bought them before the record date (i.e., prior to march 6), when the spilt takes affect in April you will have 200 shares at half the price. If your broker is telling you it is too late, I strongly suggest you dump your broker because he doesn't know what he is talking about (you should question how he passed the series 7 exam without knowing about stock splits). Today's price is 108 so in april after the split, if the stock theoretically does not move until then, it will be at 54. It's 6 of one or half dozen of the other.
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