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!
JRshraderJanuary 10th was the date of record. Since you were not a shareholder as of this date you will get the additional shares due to the split.I read once some where that a stock split is like getting change for a dollar as you would have more shares of stock, but they each would be proportionately less. The dividends per share would also be reduced proportionately.DMyers8985
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