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Non-Tech : The Children's Beverage Group (TCBG) -- Ignore unavailable to you. Want to Upgrade?

To: Dave Shoe who wrote (2077)	11/9/1998 5:21:00 PM
From: gambler	Read Replies (1) \| Respond to of 2452

I just thought of something I should add. The shares authorized does not increase automatically with a split. In other words if there is 100 million shares authorized and 50 million outstanding and a company does a 2 for 1 split there is still only 100 million authorized, but now there is 100 million issued and outstanding. One may think that the shares authorized doubles along with the outstanding, but that is untrue. A split is actually a dividend of shares. So say a company wants to do a 3-1 split and they have 50 million shares outstanding and 100 million authorized. The management cannot vote on a 3-1 split until they first have the shareholders vote to increase the number of shares authorized to 150 million. By looking at a company's shares authorized and shares outstanding you can figure out whether or not that company can do a split or not. So if there are rumors that a split may happen and some say 3-1 and 2-1 you can check the shares outstanding and shares authorized and see if a split is possible without a shareholder vote. Just another helpful tidbit. Gambler