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NEW YORK ( TheStreet) -- Does a stock's price affect what kind of shareholders it will attract? Jim Cramer told Debra Borchardt at TheStreet.com Monday the answer to that question is decidedly "Yes!"
Cramer said Salesforce.com's (CRM) decision to split its shares four for one is a direct response to seeing its current high share price being thrown around like a football by large hedge funds and institutional shareholders.
He said that, technically speaking, splitting a stock creates no value, but in essence a lower share price does attract smaller investors -- ones that are interested in holding onto a stock for the long term and not flipping it on every news headline.Cramer said Salesforce is not expensive at these levels, as other high-multiple stocks like Netflix (NFLX) and Amazon.com (AMZN) have proven. To sign up for Jim Cramer's free Booyah! newsletter, with all of his latest articles and videos, please click here. -- Written by Scott Rutt in Washington. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
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