Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Arcon Energy (MIDL Presently) The Ultimate Sleeper -- Ignore unavailable to you. Want to Upgrade?

To: Dave Bissett who wrote (2255)	6/2/1998 10:17:00 AM
From: Ga Bard	Read Replies (1) \| Respond to of 4142

I do not know for this is new ground for me. I would assume that it will reduce the price 33% but I am not sure based on what. Until xdiv daye is announced if you buy the MIDLP you should get the split. GB

To: Dave Bissett who wrote (2255)	6/2/1998 11:15:00 AM
From: maileg	Read Replies (2) \| Respond to of 4142

Not sure whether this issue has been sufficiently addressed: some have expressed concern about the difference between dividend and split, in terms of the share price being reduced post-split. I've now spoken to several brokers about this, and the consensus I'm getting is that after a split, the share price will be reduced accordingly, and in fact, that is the best way to determine when the x-div date has actually occurred (and, was also told that the BOD determines this date, not NASD or SEC). However, when I described the situation as that of a stock (MIDLP) that may only trade a few thousand shares per day, it was also agreed that market demand could allow that the price actually may never drop (if post-split there are still people willing to buy at the pre-split price, and if people are unwilling to sell at a post-split-adjusted price). Now, most interesting, I was also told that even in the case of a dividend, the share price should also automatically reflect the dividend after the dividend is given. So, for all of those who were thinking that a split is somehow disadvantageous for this reason, apparently the same rule applies with regard to post-div/split share price adjustment. At least that is what I have heard so far. If anyone has heard or knows otherwise, please let us know. Just a lurker de-lurking... Darci