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Technology Stocks : THQ,Inc. (THQI) -- Ignore unavailable to you. Want to Upgrade?

To: Quad Sevens who wrote (3529)	2/25/1998 9:09:00 PM
From: Emmo	Read Replies (1) \| Respond to of 14266

Liguidity means that if you have a ton of shares, you can buy and sell by the boat load without affecting the price too much. IBM is an example, a fund could sell it's entire holdings of 100,000 shares in a day and it would cause not much of a ripple. That's why this stock needs to split soon to create more volume so that a fund would feel safe owning the stock. Liguidity is also why many funds are prohibited from owning small cap stocks. Too hard to dump your position if you see a storm coming.

To: Quad Sevens who wrote (3529)	2/26/1998 11:07:00 AM
From: Zirdu	Respond to of 14266

Have to agree with Wade on the issue of whether a split increases liquidity and possible share price appreciation. Though a split increases the average daily volume, I don't see that it will increase the average daily $$ amount of stock being traded. And that is what liquidity is all about. For an example of a stock with a small number of shares, where no one is complaining about lack of liquidity or inability to appreciate in price - Berkshire Hathaway. Only 2.2 million shares outstanding, though each one trades at $55,000 per share or so. Of course in an extreme case like this, I can see why a split might help in liquidity. But for any share price under several hundred, I can't see why a split will help liquidity. RR