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Technology Stocks : InfoSpace (INSP): Where GNET went!
INSP 89.89+8.0%Nov 21 9:30 AM EST

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To: Technologyguy who wrote (3040)4/10/1999 4:33:00 PM
From: Hawkmoon  Read Replies (1) of 28311
 
Institutional investors don't care whether they get 10,000 shares at 100 or 40,000 shares at 25

Techguy,

Well, if we were just discussing institutional investors you would be quite correct.

However, since most of us who reside with the "unwashed masses" really like to know we can pick up 1,000 share blocks (or smaller) of a particular stock at $35/share instead of 250 shares at $140/share.

It encourages non-institutional investors to buy the stock thus broadening out the shareholder base and increases trading liquidity.

Other than that, stock splits do nothing except make stock transactions a bit more expensive (especially for blocks over 5,000 shares) and create positive positive psychological effects among investors.

But then again, I ask myself why certain non-internet small caps growing at double digit rates in revenues and profits rate only single digit P/Es...

Go figure... :0)

Regards,

Ron
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