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To: Ron McKinnon who wrote (14258)	5/12/1998 9:30:00 AM
From: Nemer	Respond to of 53068

Ron: "when issued" Gollly, I'm glad Scott was able to reduce it to a paragraph..... The problem that always arises in my recollection is the actual timing of the stock itself and what effect the purchase of it of when issued is issued as specifically relates to stock splits....... Coincidentally, this very subject came up in one of the newsletters that I read , -------and I partially quote and quote partially from there ----- the trading of "when issued stock" (post split priced stock that begins trading near the record date) or the importance of the stock record date. The article that appeared in Investor's Business Daily on Tuesday April 21, 1998 on page A3. The article in IBD, for example, had no comments by anyone on any price data related to the stock record date. This is a very important date to be aware of when trading splitting stocks or options on those split-pending stocks. 1. the announcement date 2. the approval date, if an approval is needed, 3. the stock record date, and 4. the date on which the stock actually splits. The stock record date is especially important to the short term trader, especially call buyers and vertical bull spreaders. This is because the "when issued" stock starts trading on or about the stock record date. For certain stocks trading in the new shares is allowed to begin well before the split date. The trading may begin no sooner than the fourth business day before the record date, and continues through the last day before the ex-dividend or split execution date. On the NYSE, whether "when issued" is allowed to trade depends on how much time is involved between the two dates and on the likely degree of interest in the stock. On the American Stock Exchange (AMEX), when-issued trading is allowed ONLY IF THE STOCK SPLIT IS 2-FOR-1 or greater. Even though in NASDAQ stocks there must be two or more market makers ready to trade the when-issued stock, So on NASDAQ stocks it can be said there is no when-issued stock traded on splitting stocks. It is this absence of when-issued traded stock that contributes greatly to the more likely abrupt price appreciation on NASDAQ stocks on the split date and also on ASE stocks that split 3 for 2. In my opinion, it is because the ASE does not allow when issued stock to trade on 3 for 2 splits that the 3 for 2 factor appears to be better than the 2 for 1 factor in splits as reported in the referenced IBD article and elsewhere. I have even wondered if the NYSE devised trading when issued stock in stocks that were about to split to provide for orderly markets. My studies show that there is more disorder or abrupt price appreciation about the split date if there is no when issued traded and even more so if the splitting stock is optionable. I wish you'd make this as clear as the glass on my tractor, and please try to keep it to one paragraph.....VBZGGGGGG Regards---Tony