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Technology Stocks : Dell Technologies Inc.
DELL 118.47+1.0%3:59 PM EST
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To: bh who wrote (101533)2/17/1999 3:41:00 AM
From: SirVinny  Read Replies (1) of 176388
 
You are right BH. On paper a split adds no value. However, there are two factors that have a positive effect on stocks that split:

1) Psychological - investors feel they are getting something for free. For example, If you ask a kid if he prefers two nickels or a dime, the kid will opt for the two nickels. Believe it or not adults are no different.

2) Affordability - Investors who could not purchase a reasonable amount of shares prior to split can now purchase shares at lower price. This henceforth generates a higher demand for stock.

SirVinny
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