Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 326.87

+1.3%

11:36 AM EST

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To: Teri Skogerboe who wrote (7914)	9/12/1997 1:03:00 PM
From: r conrad	of 70976

Thank you, Teri. I, too, was thinking it was a tax consequences thing. But my question is -- Does the stock drop in value by the amount of the dividend, i.e. if you have 200 shares and then 400 after the dividend, and the price was 95 at the time of the dividend, do you end up with 400 shares worth 47.50 or 400 shares worth 95? Of course, 100% dividend would cause some dilution and probably cause the price to drop anyway, but maybe not 100%. What if it even dropped 50%? You'd still have a huge profit. Just speculation here but even the Barron's Handbook does not say that a 100% dividend is actually equal to a split. It probably is, but it is a question since I've never encountered a 100% dividend before. (Excuse me if this is a dumb question, guys.) Good luck to all. RC

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