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Microcap & Penny Stocks : Amazon Natural (AZNT)

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To: DSPetry who wrote (18991)2/10/1999 7:08:00 PM
From: Angusb  Read Replies (1) of 26163
 
Technically it should have no effect since the dilution is exactly balanced by the increase in each investors holdings.

In practice it often leads to an increase since:

- It is easier for a small investor to buy in board lots

- It is normally associated with successful companies whose stock price is starting to get get close to the triple digits. Look at many European stocks (or Berkshire Hathaway) for examples of stock prices when splits are not used

- It is another chance to issue a PR and generate some publicity

There are many exceptions, however.

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