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Author: Wilbur97 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3869  
Subject: Re: Compaq Split, Was this dumbest? Date: 1/23/1998 12:04 AM
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Nope you don't have to worry.. Soon you should get a notice that the shares you own are now twice as many.
The reason companies split is to lower the cost of buying shares. Some brokerage houses have special fees for trades less than 100 shares. When you buy 100 shares it is called a round lot. But some brokerage firms charge a special fee if you don't buy shares in 100 round lots. If you buy less than 100 shares that would be called an odd lot trade.
So for example if the stock was $50 a share.. to buy the 100 shares you would need $5,000 dollars.. A lot of money for some people to purchase just one company {like me :o))..
But with the 2-1 split the price would drop to $25 and only require a person to have $2500.. Some people get all excited over a stock split people since they think they are getting a bargain when the stock splits but you still own the same percentage of the company before and after the split.
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