Amazon.com, Inc. (AMZN) Message Board

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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 242.94

+1.5%

Feb 2 3:59 PM EST

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To: Mark Myword who wrote (4839)	5/29/1998 12:24:00 PM
From: William T. Katz	Read Replies (1) of 164685

Effect of split: Common wisdom is that a stock runs up after a split because the little stupid guy can afford the stock now and he doesn't know anything about valuation. This wisdom was violated by Iomega after the split. The question: Why should a split help shorts? All current shorts will have their short size doubled by split and the actual % will stay the same. In other words, it's not the float size but the % shorted that matters, does it not? That said, I think lots of shorts are on the sidelines now because they don't want to be short going into split? If that is the case, we may get another contrarian drop after the split as all the shorts come back in, excluding any external market constraints. Any thoughts?

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