About the split, here is an email from their investor relations I found offer good info on how things work:
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The following is an excerpt from a memo sent to our employees. I believe it
will answer your questions.
When is the stock split effective?
The "Record Date" for the split will be on February 5, 1999. If you hold
your shares on such date, your shares will be included in the split.
After February 17, 1999 (the "Payable Date"), you will receive a share
certificate and your brokerage account will be credited.
Example: If on February 5, 1999, you hold a certificate for 100 shares of
Broadcom Common Stock, you will receive another certificate for 100 shares
after February 17, 1999. Split shares are not paid immediately after the
Record Date because time is needed to report the number of shares and
shareholders to the Company's transfer agent and to prepare the new
certificates.
On February 18, 1999, the day after the Payable Date (2/17), Broadcom Class
A Common Stock will officially begin trading on the Nasdaq at the adjusted
price. In between February 5 and February 17, trading will generally occur
on the same basis as it did prior to the announcement of the split.
Shares of Broadcom Common Stock
For common stock (Class A or Class B) which you own as of the Record Date,
the number of shares will be doubled and the cost basis will be halved. For
example, if you own 100 shares with a cost basis of $10 per share on the
Record Date, you will own 200 shares with a cost basis of $5 per share after
the split.
I want to sell shares of Broadcom stock which I purchased PRIOR to the
Record Date (2/5). Does it matter when I sell my shares?
No. If you sell shares prior to the Payable Date (2/17), you will be
selling pre-split shares at the pre-split price. After the Record Date
(2/5) and prior to the Payable Date (2/17), your shares trade with a "due
bill," i.e., the shares you trade are "due" an equal number of shares
issuable in the stock split. When you make your trade, you surrender your
pre-split shares. You are then going to receive (or your brokerage account
will be credited with) an equal number of shares as a result of the
stock-split. Because the shares you sold traded with a due bill, you are
required to forfeit that same number of shares received in the split to the
broker. Your broker will keep a tab of shares owed on due bills and will
settle your account when those shares are received by your broker.
§ Example 1: If you have 100 shares in your brokerage account on the Record
Date (2/5) and you want to sell the shares on February 10, you will be
selling 100 shares at whatever the market value is at the time of your sale
(e.g., 100 shares @ $120/share). Your broker will sell the shares in your
account and settle your trade on the third trading day. Those 100 shares
were traded with a due bill; i.e. the buyer of the shares is now due an
equal number of shares as a result of the stock split. Since your 100
shares were held in street name in your brokerage account, your account will
be credited with the additional shares after the Payable Date (2/17)
(without any action by you - you will see the credit on a statement produced
by your broker). The broker will then remit the 100 shares received in the
split to the buyer with the due bill.
§ Example 2: If you personally hold a certificate for 100 shares on the
Record Date (2/5) and you take the certificate to your broker to sell the
shares on February 10, you would be selling the 100 shares at whatever the
market value is at the time of your sale (e.g., 100 shares @ $120/share).
The buyer of these 100 shares is "due" a certificate representing an equal
number of shares because of the stock split. Therefore, the broker will
sell the shares, settle your account on the third trading day following the
February 10 sale, and keep track that you still owe the buyer the 100 shares
that you will receive in the split. When you receive those shares in the
stock split after the Payable Date (2/17), you will then be required to
forfeit those shares to the broker (your account will reflect a 100-share
deficit until you deliver these shares to the broker).
Do I turn in my old certificate(s)?
No. You keep your existing certificate(s) and, because the split is
two-for-one, you will receive another certificate for an equal number of
shares. Certificates for the stock dividend will be mailed by the Company's
transfer agent beginning on February 17, 1999. If your shares are deposited
with a broker, you should receive a stock split notice and an updated
statement directly from your broker.
Carol J. Prado
Manager, Shareholder Services
Broadcom Corporation
16215 Alton Parkway, Irvine, CA 92618-3616
P.O. Box 57013, Irvine, CA 92619-7013
TEL 949-450-8700 FAX 949-450-8710 |
