Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: PAL who wrote (109233)	3/12/1999 12:34:00 PM
From: Chuzzlewit	Read Replies (3) \| Respond to of 176387

PAL, stock splits simply do not matter! In fact, they are really anachronisms because there is no longer an advantage in buying round lots. To argue otherwise is really tantamount to say that the capitalized value of a company depends on how many shares of stock are o/s. But now Leo Fasciocco admits that the foregoing is true and still relies on the psychology ploy. IMO, the comments in the article are downright silly. Here is a prime example of how silly the arguments are. These are the arguments for why a split may be bad: There are two reasons. One is the stock's price may be up sharply and due for a normal pullback. The second is that too many splits increase the float -shares outstanding not held by insiders. That makes the supply of the stock greater and can cause an imbalance of the supply-demand equation. I really dislike these inane comments. The demand is for ownership of the company, not for pieces of paper! The implication is that you can equate wealth with the denomination of the currency! If some is worth $1 million is it germane to ask whether its in nickels or hundred dollar bills? If it were printed on plastic this article would make good liner material for a garbage can. TTFN, CTC