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Microcap & Penny Stocks : TNRG Tianrong Building Materials -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (7927)	5/21/1999 1:20:00 PM
From: BishopsChild	Read Replies (1) \| Respond to of 9824

Below are the NASD's policies regarding dividends where no Ex-Dividend date has been set: In trades that take place prior to the Ex-Dividend Date: The purchaser will receive the Dividend. The seller will not receive the Dividend. In trades that take place on the Ex-Dividend Date: The purchaser will not receive the dividend, but will benefit from the lower price. The seller will receive the lower price, but benefits in that he also receives the Dividend. In trades that take place after the Ex-Dividend Date: The purchaser will not receive the Dividend. The seller will receive the Dividend. Therefore, as an example, any record holder of TNRG as at May 20, 1999 is guaranteed the TIPS Dividend; however, if the TNRG shares are sold prior to the Ex-Dividend date, the TIPS Dividend shares pass to the new purchaser with the TNRG common stock purchased. In other words, for a TNRG shareholder to receive his TIPS Dividend, he must be the owner of the TNRG common stock on the TNRG Ex-Dividend date. The Ex-Dividend date will not be set until the TIPS Registration Statement for the Dividend is declared effective by the Securities and Exchange Commission. **************************** Because TNRG is distributing shares of another company as dividends to their shareholders this falls under Special Handling Rules. What exactly these rules are, I dont know ! But what is clear here is that the TIPS shares have to be registered first before before any Ex Dividend Date can be set by the SEC. This is a first for me....... shares of another company given as dividend by a different company....... and basically I am waiting to see how this comes out. I would guess this isnt a common thing.