SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?


To: FlameMe who wrote (32405)10/7/1999 6:27:00 PM
From: KailuaBoy  Read Replies (2) | Respond to of 41369
 
OK. I'll bite.

Scenario #1

So AOL issues 4.2 Billion new shares of stock. Now they have stock to do a deal. What happens to the value of your shares of AOL when they don't split but rather are now in a pool of 6 billion instead of 1.8 billion? You get fewer dollars when you sell each share.

Scenario #2

AOL decides not to issue new shares but rather split the outstanding shares into thirds thereby increasing the number of shares to 6 billion. How does that give them "more shares" with which to do a deal? Are you gonna give them one of your shares back when they split them into thirds?

I still don't get it. Can someone smart please help me here?

KB