The Motley Fool Discussion Boards

Previous Page

Learning to Invest / Terms, Definitions, & Jargon


Subject:  stock split as dividend? Date:  1/12/2005  12:59 PM
Author:  JRshrader Number:  1490 of 2244

I'm thinking about buying a stock that has announced a stock split to occur next week. What confuses me is the wording of the announcement. It says "on Jan. 18, shareholders will receive one additional share for every two common shares held at Jan. 10." I am currently not a shareholder, so it sounds like if I buy the stock today, I will not get the additional shares being issued on January 18th. But the price will still go down as a result of the split. So how do I not end up losing money on the deal if I buy today? I feel I must be missing something, but I don't know what it is.

Help, please!
Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us