Basically I have brought some shares on 10/26 which as per its split news has to be on record on 10/29, but my brokerage says the settlement is on 10/31. The payable date of the split is 11/8. So my question is first will I get the split shares and second can i sell it today and still get the split shares?
2007-10-30 09:27:21 · 5 answers · asked by AntriX 1 in Business & Finance ➔ Investing
The record date is an accounting matter for the company and for the stock registrar. As an investor, you can ignore it for most purposes.
Regarding buying or selling stock, the date to be concerned with is the EX-DIVIDEND date. That is the first date on which it trades AFTER the split (a split is technically just a stock dividend). Let me illustrate by example.
You own 100 shares of ABC, which is scheduled to go ex-dividend tomorrow. It closes today at 10. Tomorrow morning, you will own 200 shares of ABC. Unless some unusual news happens overnight, the stock will start trading tomorrow at around 5.
Today, you have 100 shares x $10 = $1000 worth of ABC
Tomorrow, it's 200 shares x $5 = $1000, no change
While many people get excited about splits, studies have shown that they don't make much difference in the value of the stock. So it should not matter if you buy it before the ex-dividend date or afterward.
Best of success.
2007-10-30 10:23:34 · answer #1 · answered by Thinker 5 · 0⤊ 0⤋
Stock Split Record Date
2016-11-07 08:05:07 · answer #2 · answered by ? 4 · 0⤊ 0⤋
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RE:
What is record date in stock split if record date for stock split is today can i buy today and get it?
Basically I have brought some shares on 10/26 which as per its split news has to be on record on 10/29, but my brokerage says the settlement is on 10/31. The payable date of the split is 11/8. So my question is first will I get the split shares and second can i sell it today and still get the split...
2015-08-13 04:06:52 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The record date is the date when the company checks its record to determine who owns the stock that split. If the record date is today and you bought the stock today, you are not the owner on the record date because it takes three days for the company to get the information that you bought the stock. If you bought the shares three days before the record date, you should be entitled to the shares that will be issued for the split.
It is very simple to determine if you get the split shares. Check the price of the stock a few days ago and compare it with the price you paid. If there was a 2 for 1 split and you paid close to the price of a few days ago, you will get the stock. If you paid about half the price, you bought the shares after the split.
2007-10-30 10:15:46 · answer #4 · answered by Anonymous · 1⤊ 0⤋
1. This happens because of the delivery schedule / clearing schedule of the stock exchanges and mechanism to transfer the shares to the buyers. 2. If you buy now ( what ever you meant by today ), you will not get those split and bonus shares. The price is already adjusted for the same. It won't be adjusted again.
2016-03-15 03:47:47 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It doesn't matter. Stock splits mean nothing (except for amateurs). This is the last thing, (if at all), you should be interested in.
2007-10-30 10:14:26 · answer #6 · answered by Common Sense 7 · 0⤊ 1⤋