Nope, E*Trade is diluting, not splitting.
An exert from the last proxy (final) authorizing 5/20 split:
On January 19, 1999, the Company had 56,965,795 shares of Common Stock
issued and outstanding. Also on that date, the Company had 8,311,040 shares of
Common Stock subject to outstanding options under the Company's 1996 Stock
Incentive Plan, including options incorporated from the predecessor plans, and
471,480 shares available for issuance under the Company's 1996 Stock Purchase
Plan. These share numbers do not take account of the Company's 2-for-1 stock
split effected by means of a 100% stock dividend on January 29, 1999. After
accounting for the 2-for-1 stock split, substantially all of the Company's
150,000,000 authorized shares have been issued or reserved for issuance and
thus few shares would be available to the Company for use in connection with
its future financing and other corporate needs.
The lack of authorized Common Stock available for issuance would
unnecessarily limit the Company's ability to pursue opportunities for future
financings, acquisitions, mergers and other transactions. The Company would
also be limited in its ability to effectuate future stock splits or stock
dividends. The Company has considered plans to issue additional shares of
Common Stock in possible future financings. The Board of Directors believes
that the increase in the authorized shares of Common Stock is necessary to
provide the Company with the flexibility to pursue the types of opportunities
described above without added delay and expense.
The availability of authorized but unissued shares of Common Stock might be
deemed to have the effect of preventing or discouraging an attempt by another
person to obtain control of the Company, because the additional shares could
be issued by the Board of Directors, which could dilute the stock ownership of
such person. The Company has no plans for such issuances and this proposal is
not being proposed in response to a known effort to acquire control of the
Company.
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