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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: Nichols who wrote (1053)	9/23/1999 9:12:00 AM
From: John Westman	Respond to of 24042

I'm willing to bet there are also some who will call their broker on the day of the split to ask what happened causing a 50% drop in the price. $110 divided into 2 piles is still $110. However, if you divide it into three piles...... then you might have something. j

To: Nichols who wrote (1053)	9/23/1999 9:17:00 AM
From: Stocker	Read Replies (1) \| Respond to of 24042

Using your example - if a person has $5,000 to invest if the stock trade at $100, he can only get 50 shares. Now that it split and it trades at $50, he can get 100 shares!! Twice as many shares. If a person wants to use a covered call option strategy (ie-write a call against their long position in the stock) now it would be easier to do once the stock splits. You need to have at least 100 shares to write an option. If you had fewer shares, you couldn't do it. It also can make options trading cheaper because you can now trade more contracts. For small companies, splitting the stock makes the float larger and can greatly enhance the liquidity of the stock. Also, it does become easier for small investors in terms of placing limit orders etc. In Canada, or in the US if trading is illiquid, placing a limit order for 50 shares usually means your order will sit around forever. Board lot orders usually have all the priority.