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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today

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To: Grupo Brad who wrote (12128)12/6/1998 6:46:00 PM
From: Bill Brogan  Read Replies (3) of 19331
 
Okay, Okay...

After reading about it since I invested in this company a week or so ago, I'm actually thinking about calling my broker for the stock certificates. But first, I need to understand what benefits and limitations this produces.

1. It obviously sounds like the primary benefit is the reduction in the number of shares available for purchase, which according the law of supply and demand says the price will be driven much higher if there is a sudden demand for the stock. Is this why we're doing this?

2. Now, if the price of the stock skyrockets but then starts slowly drifting back down then those of us holding certificates are out of luck because a stock certificate is not a liquid investment. Holding certificates takes away the flexibility to sell quickly, right? What is the typical time required to "cash in" a stock certificate? Do they have to be mailed back to your brokerage house and redeemed? I get the feeling some will answer me with "we're doing this for the long term so yes, you will lose your flexibility to sell when the stock price fluctuates."

Thanks for the encouragement...

--Bill
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