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Technology Stocks : Lucent Technologies (LU)

LU 2.570

-3.0%

Nov 17 3:59 PM EST

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To: Sueponine who wrote (6647)	3/16/1999 4:44:00 PM
From: Ben Antanaitis	Read Replies (4) of 21876

If you are a holder 'of record' ie on 'the record date' then the company authorizes the extra shares to your broker to 'appear' in your account at the exact moment of the split if you still hold them. If not, and you want to trade pre-split shares after the split date and the 'bookkeeping' hasn't caught up with them yet, your broker has to go to the company and verify that the shares are the pre-split ones and that you really should be credited with the extra split shares. It really is transparent to the average stockholder, but it can delay the in-out day traders settlement a bit because the shares have to be verified credited and reissued as the new split variety. That may not be the proper wording, but that is the effect. It's as if you actually held the paper certificates. If you were 'of record', then you'd get a mailing with the new ones on the day of the split. If you weren't 'of record', they would eventually track you down, but if you wanted to sell them before that the broker would have to verify what type and how many you really held... pre-split, post-split, etc... It's a bookkeeping thing. That help? Ben A.

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