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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: ribman who wrote (36516)1/14/2000 12:50:00 PM
From: Ian Anderson  Read Replies (2) | Respond to of 93625
 
Can someone explain to me why a split helps liquidity?

May be I am being dumb, but is seems to me that after a split, the same proportion of the stock would be held by institutions, the same proportion would be by insiders, the same proportion would be short.

One would also expect the traded volume to double, although the number of trades would not change, as traders risk the same amounts of money, on deals double the current number of shares.

The only difference is each of these groups holds twice as many shares, so why does it change anything?

Ian



To: ribman who wrote (36516)1/14/2000 12:59:00 PM
From: Dave B  Read Replies (1) | Respond to of 93625
 
Alright, which one of you is Larry in Illinois? Larry just called in to CNBC and asked about the 'Bus.

The analyst (Ryan Crane?) got the story pretty right on. When asked if you should buy he responded "If you're risk tolerant. It's not for the faint-hearted. [One more positive statement but I've forgotten the exact wording -- something about the possibility of it going up, I think.]"

A good response.

Dave


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