Investing questions
Anton Sherwood (dasher@netcom.com)
Wed, 17 Sep 1997 18:50:50 -0700 (PDT)
Keith Elis ('Hagbard Celine') writes
: First, I don't see how a split creates liquidity since no new shares are
: being sold. As I understand it, it's a board decision to halve the value
: of a share thereby doubling the number already in existence. Wouldn't it
: be nice if a corporation could create liquid capital just by cutting its
: share price?
Not the liquidity of the corporation. The stock becomes more
attractive to buyers because the stock itself is more liquid when
it's in smaller pieces.
Anton Sherwood *\\* +1 415 267 0685 *\\* DASher@netcom.com