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Technology Stocks : AUTOHOME, Inc
ATHM 24.34-3.4%Nov 7 9:30 AM EST
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To: DEJ63 who wrote (5514)2/18/1999 1:48:00 PM
From: David Harker  Read Replies (2) of 29970
 
OT - splits

I agree, splits cause excitement, which MAY cause a stock to
rise. That is a second-order effect of what it does to people
emotionally. Financially, the $5/$10 example holds.

>Actually, if the company splits it's stock, that normally allows
>those folks that would not purchase a $100 stock to now purchase
>a $50 stock, if you assume a 2 for 1.

Maybe in the old days when 100-share blocks had cheaper broker
commissions. Today, just buy 1/2 as many shares at 100/share than
you would have bought if it was selling for 50.
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