From: Anton Sherwood (dasher@netcom.com)
Date: Wed Sep 17 1997 - 19:50:50 MDT
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
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