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

To: aleta who wrote (7783)	5/28/1998 11:38:00 AM
From: Jon Tara	Respond to of 18444

Aleta, it will be tomorrow. The effective date is date on which all holders "effectively" double their shares. The "record" date is just a "legal" date. Shareholders "of record" as of that date will be sent the extra shares by the company. (Or, their broker will be sent the shares, if held in street name.) Shareholders who sell their shares between the record date and the effective date are obligated to pass-on the shares to the buyer when they receive them. Most shareholders hold their stock in street name, and their brokers will take care of this for them. Woe be to the shareholder who holds certificates and fails to do this, because they will have an open-and-shut civil suit brought against them. The settlement date is simply the regulatory settlement date, by which all transactions must be fully settled - i.e. all money and certificates must have changed hands. (e.g. just as when you buy shares - you see the shares in your account immediately, but they actually don't "settle" for 3 days. You don't actually HAVE the shares yet, but you DO have the right to them.) That said, it is "the market" that sets the price. Nobody "sets" the price. Well, that is, other than the MMs, and were they to pull something like trying to hold the price to 5.00, they would have regulators come down on them hard. Thus, it may not open at exactly 2.75 tomorrow if it closes at 5.50 today. But it will open approximately halved, barring any other positive or negative news.