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Technology Stocks : Dell Technologies Inc.

DELL 132.51

-5.9%

3:19 PM EST

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To: Chuzzlewit who wrote (109238)	3/13/1999 1:55:00 AM
From: Bob Martin	Read Replies (1) of 176387

Chuzzlewit, Although I agree with your arguments about stock splits, there is one good reason for keeping the price down to where round lots are affordable. And that's for people who want to write options against their stocks. Options apply to lots of 100 shares. On another note, when things are taken to their ridiculous extreme (of course, I'm talking about BRK), liquidity does become a problem. Imagine you bought BRK for $3000 in the 80's (1 share), and it's now worth $65000. Great!! Now, something comes up and you need a few grand. Sorry, you've got to sell your one share, and generate a lot more capital gains than what is really necessary. So while I agree that many companies overdo the split thing, it is also silly to never split at all. Bob

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