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Re: Matholomule post# 60154

Tuesday, 07/28/2009 9:35:16 PM

Tuesday, July 28, 2009 9:35:16 PM

Post# of 76394
You are right. There is no difference.

However, there are two things you need to take into consideration:

1. When a company do a forward split, it usually has some good news. With the reduced price, it is easy to attract more buyers to get bigger gain in terms of percentage. Let's say the price after split is 0.0009. I won't be surprised to see price go up to 0.0015 in one day with a piece of good news. It is much easier for the price to go from 0.0009 to 0.0015 than 0.0045 to 0.0075 because the spreads are much less.

2. when the price is reduced, it is harder for ppl to sell. Let's say again the price after split is 0.0009. I don't think a lot of ppl will sell it at the asking price 0.0008 because it represents 0.004 before the split. As you see, there are a lot of buyers at the price of 0.0045 now.

GLTA