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To: Sawtooth who wrote (2012)4/3/1998 12:33:00 PM
From: ShamukE  Read Replies (1) | Respond to of 21876
 
I use margin myself. However when you are betting on a split don't you open yourself up to an additional variable that is at best difficult to judge. e. g. A large investor wants to hold 5.0Mil. shares. He now has 10. He arbitrarily dumps 5. Drives down the price and you get murdered. Why not buy half the position paying cash. When it splits your equity position is at the same spot but you avoided an additional risk.

Please respond.