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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Tom D who wrote (2692)	4/2/1998 1:04:00 PM
From: zTrader_77	Respond to of 164684

I see your point. I guess my point is everyone wouldn't be fighting over the few shares available if there was a split. Lets just say Amazon's stock price has been driven purely on the lack of available shares (long and short). With the increase in float, the longs wouldn't be fighting over the few shares that they can buy thus avoiding big moves upward on small blocks. Of course, the short interest would increase like you said but they would have more leeway due to no real buyers on the long side. Take this for example as what is happening with AMZN. We have 10 longs fighting over who will buy the 5 shares and the 10 shorts trying to short those 5 shares. With a split, the 10 longs would have no problem buying the 15 shares and the 10 shorts would have plenty of shares to sale short. Short squeezes are caused by shorts having to cover due to the longs driving the stock up because of the lack of shares available. This problem would no longer exist if the float increased to 15MM and there was NO REAL buying pressure for the stock. Is this correct? Kirby