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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 - Get Report) 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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