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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?

To: SJS who wrote (3327)	4/7/1999 11:39:00 PM
From: Scotsman	Read Replies (2) \| Respond to of 6846

I don't think a company has to get shareholder approval for a split. It is technically classified as a dividend. Since the total market cap is not changed ( the number of shares is doubled but the price is halved,) shareholder approval is not necessary. The only time shareholder approval is needed is when additional shares are created and submitted to the public. That effects the market cap and hence the shareholder ownership. This is why companies often have stock "on the shelf." They may have a million shares authorized, but only release 500,000 for trading. If additional shares are needed, they can simply release more off the shelf as these have already been authorized by the shareholders, and hence the shareholders have nothing to say about their release. Only when all these are used up and additional shares are needed do the shareholders get involved.