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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: High Plains Drifter who wrote (1578)	5/10/1998 4:09:00 PM
From: Leif V Singman	Read Replies (1) \| Respond to of 5390

There is no fundamental reason that I can think of why the splitting of the stock should have have any effect at all on a shareholder's total worth. As has been pointed out on this and other boards, the shareholders get exactly twice as many shares and the market should adjust the price of each share to exactly half. Ericsson calls it a bonus instead of a split but the effect should be the same as far as the shareholders go. Common sense says that it has to be so or wealth could be created by simply manipulating the number of outstanding shares. Any effect would be purely psychological and as such should be temporary. All IMHO.