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Technology Stocks : THQ,Inc. (THQI)
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To: Sigmund who wrote (7291)7/27/1998 7:59:00 PM
From: Alski  Read Replies (1) of 14266
 
The exact details are posted in this thread:
207.183.154.206

<THQ also announced that its board of directors has approved a three-for-two stock split to be effected in the form of a 50 percent stock dividend. The dividend shares will be distributed on or about Aug. 24, 1998, to stockholders of record on Aug. 20, 1998.<

The case of a split is a bit different than a cash dividend, that "to be effected in the form of a 50 percent dividend" is accounting/IRS mumbo jumbo. Here's how it works. The company has to allow paperwork time between the ex div date and the actual distribution but it makes no difference if your stock is held in street name. Anyone who sells between ex div and distribution will be obligated to deliver the distribution to the new owner. If it weren't so the stock would become completely illiquid during that time. Would you buy any without such a caveat, knowing the price per share IS going down 33%? If you sell 100 shares on Aug 21 whoever you sell to will end up with 150 shares on Aug 24, each share valued at 2/3 the Aug 23 closing price. The brokers will make it so without any intervention from either buyer or seller. If you actually hold the certs, THQ will indeed send you the new shares, even if you sold, but you won't be able to sell without becoming contractually obliged to deliver the new shares too.
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