when a stock splits, and I did,nt own it on the date of record , is my stock value cut in half?

Question

I bought a stock that I later learned was being split in a day or two after I bought it, I called the company about it and was told that even though I didnt own it on the date of record, I would still recieve the split,Tonight I went deeper into the Q&A area of their web sight where it explined that if I did'nt own the stock on the day of record, I would NOT get additional stocks, So my question is, does my investment drop in half tomorrow morning at opening?

Answer 1

You will not be cheated out of money. The stock price probably dropped before you bought it.

There is a set day where anyone who holds it as of that day gets the split shares and anyone buying it after that day does not have their shares split (even though the split may not happen for a few days). On the day where they start trading post-split, the price is adjusted.

I suggest that you go to Yahoo! Finance and look up the historical prices for the stock that you bought. You will probably find that just a day or two before you bought it the price was about twice as high. If not, contact your broker and complain. You would have recourse, and should be able to demand the extra shares or back out of the deal.