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To: K. M. Strickler who wrote (40549)5/6/1998 10:12:00 AM
From: Lucretius  Read Replies (5) | Respond to of 176387
 
KM... I'll go slow.........If I own $80,000 in stock or 1000 shares @ $80 and the stock splits, now I own 2000 shares @ 40 and $80,000 in stock. When I dump my position, 2000 shares cross the tape as opposed to only 1000 crossing the tape the day previous to the split irf I had dumped my position then.

When a money manager has 80,000 to work w/ and goes to buy shares, he buys 2000 after the split and 1000 before the hypothetical split.

AGAIN, if the charts weren't adjusted for vol (which they are) your position that vol isn't declining because there was a split wouldn't hold water. In fact, it would be the opposite!!! The drop in vol would be even more!!! than I am saying. THINK!!!!! Money flow is what mney mangers move, not shares??? If I have to pay off a redemtption in the amt of $80,000, how many shares do I dump of DELL to apy for it after the split.... that's right I dump 2000. This is really simple stuff. I WILL NOT EXPLAIN THIS AGAIN.

-Lucretius