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Gold/Mining/Energy : Medinah Mining Inc. (MDHM) -- Ignore unavailable to you. Want to Upgrade?

To: Mike Gold who wrote (13337)	5/6/1999 4:51:00 PM
From: Ken Sammut	Respond to of 25548

Wes, As I shared with you once before, you statement is correct in most cases but not in cases such as the one MDIN is going through, splits, or spin-offs. You are right to think that to be shareholder of record (in most cases) your trade would of had to close by tomorrow but again not in this case. The transfer agent or Broker, if Medinah Gold was going to be publicly traded, would give the share payment to any shareholder who has the stock in his account even if the trade has not settled. They have to do it this way or the shareholder who purchases the day before an extraordinary event like the ones mentioned above, would not receive the full value for the money invested. If a company that is trading at $90 per share is going to split 3-1 tomorrow and you purchase today at $90, you account will reflect that you own three times as many shares for $30.00 even though your trade had not settled. You are not going to miss out on the extra shares Same thing with a spin-off. If the company is spinning off a division, the shareholder who buys the day before the spin-off will still get the new company. Same thing with this special dividend. You cannot expect someone who buys tomorrow not to get an important part of the company when they have paid full price for the stock. Ex-dividend and record holder definitions that we know do not apply in these cases. Ken