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Re: [sharechat] SKC split


From: "tennyson@caverock.net.nz" <tennyson@caverock.net.nz>
Date: Wed, 22 Aug 2001 23:52:19 +0000


>
>
> No one has yet mentioned the issue of leverage. Consider a $10,000
> position. @ $10.00 share = 1000 shares.   $3.00 =3,333 shares.  If
> the share price increases 10 cents, which price scenario favours the
> trader? 
> 
>
Again there is no (theoretical) difference.   Any event that will 
cause 3,333 $3 shares to rise 10c will cause 1,000 $10 shares to rise 
30c.   The Trader is no better or worse off. SNOOPY


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