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Microcap & Penny Stocks : Zulu-tek, Inc. (ZULU) -- Ignore unavailable to you. Want to Upgrade?

To: Terry T. who wrote (7556)	5/27/1998 12:31:00 AM
From: Jon Tara	Respond to of 18444

The change was not reflected in the quotes for the stock price because the split was not effective until after the close. The record date is NOT the effective date. 5/22 really means NOTHING, unless you work in the back office of a brokerage and have to make sure that all the shares wind-up in the right place. One more time - the record date does NOT determine who is entitled to receive the dividend shares. The record date is ONLY a "legal date of record". For example, if you sold your shares this morning, yes, technically, you receive the dividend. But you are obligated to pass them on to whoever you sold the shares to, and your broker will take care of that for you automatically. (That is, you get them, but you don't get to keep them!) The effective date is the date that is important. In this case, it's 5/27, since the announcement, which came after the close, gave it as "immediate". This is unusual - usually the effective date is several weeks in the future. The record date is always different than the effective date, and may be a few days to a couple of weeks before the effective date. The stock will open at a price reflective of the split on the effective date, even though the record date is earlier and everybody knows about it for weeks. Why? BECAUSE THERE IS NO NET CHANGE. Sheesh. How many times to I have to repeat that there is NO net change? Twice as many shares, and thus worth half as much each. The effective date is the one that matters, and there is no arbitrage opportunity, and thus no (arbitrage) reason for the stock to move in anticipation of the split - it will just BOOM open up at half the price. You people will grasp at any straw, trying to find the magic bullet. There isn't one here.