Forum Archive Index - August 2001

[jerrold poh <pohj@ihug.co.nz>]

> The way I see it is that a share split is one of those
> perception/reality things. A shareholder with say $5000 to spend will
> feel they have a better stake in a company with with 1362 shares @
> $3.67 compared to 454 shares @ $11.00. Clearly they have the same
> financial stake but they have the intangible "feelgood" factor on
> their side. 

also, there could be a problem if you're working with a small amount of
cash, and want to use up as much of that cash as possible.  Ie, if you
had say a small amount ilke $80,000 to invest, you can use up all of it
and buy say ... about 6000 baycorp shares, or spend $70,000 on one
Berkshire Hathaway share, and have $10,000 left over ...


Jerrold.


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