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5cap

03/30/11 9:06 PM

#30113 RE: ztect #30107

There aren't any liquidity issues, you just keep saying there are. Liquidity means the ability to buy or sell a certain dollar amount without affecting your price detrimentally. The liquidity post split will be exactly the same as now. That is, the reaction of the market to an order for $10,000 worth for instance will be the same after the split as now. Your arguments otherwise make no sense, you just keep repeating them. But hey, the lemmings believe you so what do I care.
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Schneidku40

03/30/11 9:10 PM

#30117 RE: ztect #30107

I'm not arguing that 1.58 million shares is quite low, but does a mutual fund really care whether it buys 1,000 or 1,000,000 shares to get the same stake in the company? Is there a minimum number of shares that an investment manager is required to purchase in a company?

Take Berkshire Hathaway for example. The A shares have 943k outstanding while the B shares have a little over a billion. Do you think mutual funds care that they only own 5 shares of the A stock? I know this seems like apples to mountains since BRK is a billion times larger than VTSI and the share prices are vastly different, but the ownership principle is the same. 20,000 shares of the A stock is 5% of the company just the same as 20,000,000 shares of the B stock is 5% of the share count. Again, I'm just talking about the principle. There was a discrepancy in dollars traded, since only $54 million in A stock while 300 million in B stock were traded, but how many people day trade a $128,000 stock?