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To: Jurgen who wrote (36047)	2/23/1998 1:55:00 PM
From: Falcon	Respond to of 61433

Investor Psychology......microsoft say is at 150....some people have trouble paying so much per share...but split it 2 for 1 to 75...and then it appears cheaper and it may also reintroduce volatility that would help drive it higher since more people can now play the stock...although equity is not reduced.....It also comes in hand in stock option exercises. BOTTOM LINE....the actual split doesnt effect the equity those shares are worth

To: Jurgen who wrote (36047)	2/23/1998 4:44:00 PM
From: sepku	Respond to of 61433

>>>Why do stock prices go up when companies announce a split (DELL, MSFT) or when there's a rumor that they might split (MERCK).<<< Tell that to my CYMI last August -- it split at 90 to 45, and it currently trades around 20. Last year it seemed like "post-split momentum" was a new phenomenon, but lately it hasn't worked too well. I suppose the smaller investors prefer to look at a larger number of shares in their portfolio, regardless of unchanged value...all psychological, I guess. Style Pts.