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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host
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To: XOsDaWAY2GO who wrote (1452)9/6/1997 12:05:00 PM
From: Cynic 2005   of 42834
 
BF, first let me clarify the terminology
Record date - the date you called cutoff date - is the day on which (COB) the company records the rightful owner of the shares and sends him (or his street name, i.e. broker) a notice saying that he will receive the new and additional no. of shares.
Issue date - the day on which split becomes effective, again at the COB. You will see adjusted quotes the next day.

1. You bought before the record date - no probs. You will get notification of additional shares entitlement from the company directly.
2. You bought after the record date but before the issue date. Again no probs. You are still entitled for the new shares, not the seller. Look on your confirmation. Your broker will say "with due bills." i.e. You will get some thing more with that trade.
3. You bought on the issue date - #2 still applies.
4. You bought after the issue date. The price is already adjusted and you get only the new shares. No additional shares.

In #2 and #3 the arrival of your new shares into your account MAY be delayed, but by no more than the settlement date (T+2 rule applies.) As far as I know, any broker will let you sell all of your shares even if the new shares haven't hit your account yet.
Hope this is clear.
Good luck!
-Mohan
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