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Can anyone translate this statement (below) - both "in the form of a 100% stock dividend" as well as the "shareholders of record" phrase. I bought 40 shares in early Feb. so does that mean I don't qualify?

MINNEAPOLIS---January 13, 2000---ADC (Nasdaq: ADCT, today announced that its Board
of Directors has authorized a two-for-one stock split of ADC's common stock in the form of a
100% stock dividend. The new shares will be distributed on February 15, 2000 to shareowners of
record as of the close of business on January 25, 2000.

The phrase "in the form of a 100% stock dividend" is accountant speak. There are two ways to effect a stock split on the books of the company. One is called a pure split and the other is a stock dividend. The only thing that changes is the way they record the split in the accounting records (they move some figures around in the shareholders' equity accounts to update the capitalization of the company). To the average shareholder, there is no difference between a 2 for 1 pure split and a 100% stock dividend. So don't sweat this little detail.

Next, the record date. This confuses more people than just about anything with regard to splits. The simple answer is that if you own shares before Feb. 15, you will get the additional shares on that date. The company does indeed issues its shares based on the shareholder list at the record date. The broker simply attaches a 'due bill' to any transactions between the record date and the split date, and the newly issued shares get deposited in the proper accounts. Check your trade confirmation slip for the words "with due bill" or "with stock split shares" (although I'm not sure every broker annotates their trade confirmations this way -- Schwab and Waterhouse do).

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