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Microcap & Penny Stocks : Zulu-tek, Inc. (ZULU) -- Ignore unavailable to you. Want to Upgrade?


To: PartyTime who wrote (7587)5/27/1998 10:50:00 AM
From: Jon Tara  Read Replies (2) | Respond to of 18444
 
"So if you've got one ESVS share worth $5.00, you now have two shares worth $5.00 each"

Boy, don't we all wish we could all just print money like that!

But they AREN'T worth $5 each.

Let's say you had x,000 shares, and that represented 1% of the company.

Well, x,000 shares now represents 1/2% of the company. It is now worth 1/2 as much.

Fortunately, you now own x*2,000 shares, and so you are whole.

But you didn't double the value of your shares.



To: PartyTime who wrote (7587)5/27/1998 11:02:00 AM
From: aleta  Respond to of 18444
 
PT,

I too understand very little in relation to splits and dividends, so I went to the dividend and split threads, read a little to find some people who appeared knowledgeable and PM'd them asking them for their take on the article. According to their answers this is a 2 for 1 stock split. The price should adjust at some point.

My personal experience with stock splits has been good. In my case the company was selling for over $150 per share and felt that a lower price might encourage more buying. I don't believe that is the case here.

Aleta