Just got back from picking up another load of landscape ties, and MSSI up some more .22 x .25.
Posted by: SSP
In reply to: Patsy who wrote msg# 16499 Date:10/15/2003 12:58:55 PM
Post #of 16516
OK thinking out loud here, because of the late Ex-Date, people got shares early and sold on the 8th, thinking they were selling split shares, but they weren't. Those sellers have to come up with more shares now, since they are responsible for the dividend. I'm sure their broker is telling them they must buy the shares in the open market to deliver the extra shares.
Posted by: SSP
In reply to: Patsy who wrote msg# 16499 Date:10/15/2003 1:03:55 PM
Post #of 16516
Lets do some math, if insider had 10,000 shares, and he thought he could sell 150,000 shares and only sold 10,000 shares, he's fine, all he has to do is deliver the other 140,000 shares left, but if he sold 20,000 shares then he must deliver 140,000 PLUS 150,000 shares = 290,000.
Which means he must go into the open market and get 150,000 shares to deliver.
Posted by: Patsy
In reply to: SSP who wrote msg# 16501 Date:10/15/2003 1:11:17 PM
Post #of 16516
So they actually sold before the dividend date and are in a world of hurt and are not entitled to the split shares because they sold before the X date, correct? |
