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To: Robert Page who wrote (2225)11/24/1997 12:06:00 PM
From: ABC FINANCIAL  Respond to of 6180
 
WE ALL WISH THAT STOCK SPLIT WILL DOUBLE OUR MONEY

Splits don't work that way. On 11/20/97 you bought 100 shares. Today is the SPLIT DATE. Now you have 200 shares, 2 for 1 split. However, the STOCK PRICE and the DIVIDEND split too. Assuming that the stock price stayed at $100/sh, you still have $10,000.

11/20/97
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100 shs @ $100/sh = $10,000

There are various reason why companies split their stock. Two of them are:

1) Attrack new investors to buy stock at a cheaper price
2) Dilute stock ownership among a larger number of investors

11/24/97
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200 shs @ $50/sh = $10,000

You will generate a higher return in the long run if your stock splits. Ask anybody that has owns MICROSOFT since it started trading. They sure love STOCK SPLITS.