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We bought some CREE on 12 July and were planning to buy more, BUT..... we cannot seem to get a straight answer on the stock split: WHAT date is the last date you can buy it and still get the split?

We want to buy more anyway, but obviously, the price per share we are willing to pay depends on whether we are getting the split or not.

But there is an "payable" date, an "ex" date and an announcement date. And on various sites there are even different dates given for the same thing.

I even tried calling CREE themselves and they said that they would give the split to owners of record on the 26 of July. But when I asked them if you were the owner of recond on the day you made the trade or on the third business day folling they said I'd have to talke to my broker. So I called BOTH of my brokers help lines (online traders) and go different and conflicting answers.

Out of all the (supposedly!) informative sites on the web, NONE gave a clear unambiguous statement of how to determine WHAT was the cutoff date for purchasing a stock and still getting the split!

Im makes we wonder what OTHER important details are being left out and/or glossed over!

And I've seen some discussion groups where questions like this were asked and most of the replies were flagrant (and conflicting) guesses.

Does anyone KNOW?
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Why are you hesitating? This stock continues to rise after a sell off as witness this week. If you want to buy more do it now or wait until the split as I will do. I bought in at 19 in 1997 and truly feel that this company will make me alot of money.
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The date of the split is July 26. See the FAQ on record dates. Bottom line, is you will get your shares.

http://www.fool.com/foolfaq/foolfaq0035.htm.

Here is the press release announcing the split:http://beta.moneycentral.msn.com/investor/news/article.asp?SYMBOL=CREE&ArticleID=PRN,1999/07/13,CHTU006bc%2DNC%2DCree%2Dstock%2Dsplit&Page=303

(Ignore the java errors, the full text will come up just fine...)
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Maybe you need a new broker. They should be able to tell you how long it takes them to process your transaction, making you a "shareholder of record". You know the rest.
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How does the "shareholder of record" date relate to the
"trade date" and "settlement date" (both of which are listed on my trade confirmation, which does NOT list any "shareholder of record" date)?


What is truly APALLING to me is how difficult it seems to get a clear an unambiguous answer on this basic question: I have called the company issuing the shares, BOTH of the online brokers I am using and have searched all of the available information on the Online brokers help files, education files, and many other websites, etc. AND checked MANY books on stocks in the bookstores and yet STILL can't get a clear an unabiguous answer to the fundatmental question:

WHAT is the last date on which if I PROCESS a trade (online) in which I will get the split?

WHATEVER the truth is, there is clearly a lot of misunderstanding and ambiguity out there on this issue.

I find this particularly disturbing because it makes me wonder what OTHER important topics are poorly explained on stock issues?

If some big event happened and a large group of users of online trading got caught out a an ugly surprise due to poor infomation on FUNDAMENTAL workings of the transactions, this might kill online trading.

I really cannot understand why such "fuzziness" in information is tolterated.
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If you really want to know exactly all this works, try posting your question on the "Ask a Foolish Question" board in the Information Desk folder. I once posted a similar question there -- one that I was having trouble answering even though it seemed awfully basic -- and got a great explanation.

But to hazard my own guess, I think the answer is that today (July 26) was the last day to buy CREE at pre-split prices. In other words, if you had an order execute today to buy 100 shares at $68, when the trade settles you will actually receive 200 shares. But the stock will then be trading at $34, more or less.
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If some big event happened and a large group of users of online trading got caught out a an ugly surprise due to poor infomation on FUNDAMENTAL workings of the transactions, this might kill online trading.

I really cannot understand why such "fuzziness" in information is tolterated.


I think the reason is because it just isn't a big issue. The stock will trade at the right price. If you buy at pre-split prices you will get the split. If you buy at post-split prices you will not. There would be far too many people willing to swoop in on a "deal" if a pre-/post-split price were to get out of line and the situation would rapidly correct itself -- so quickly that you won't even spot the problem (either that or the stock would be so illiquid you would probably be better off not investing in it in the first place).

There is a situation where it can catch you but it's pretty unusual. If a company that has fairly low trading volume issues a special dividend that is quite sizeable (e.g. in the neighborhood of the price of a share) the price may get out of whack on the wrong day.
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I HOPE that you are right about the split. We bought more shares yesterday (26th July) at pre split prices.

But our portfolio page showed
CREE stock split projected in our account to be : XX shares projected to be
received on 08/05/99.

But XX was the number of shares we bought on July 12th and did NOT include the shares we bought on the 26th of July!!?? Since the portfolio page DID list the shares we bought on the 26th,I HOPE this is only because it takes longer to post the "projected receipt of the split" and the projected receipt of the split on the additional shares just hasn't yet been posted.

If what is currently posted IS correct it means we paid pre split prices and did NOT get the split.

But the online brokers DO seem to have a few bugs: I bought shares of Celera Genomics (CRA) from a different online broker and the company was always correctly listed on the screen (CRA Celera Genomics) but when I got the confirmation I got a BIG shock! It said "CRA Critical Care Associates" !!??!!

A quick check of my portfolio at the web site showed the correct listing of Celera Genomics and they are sending corrected confirmations. But what a rude shock! I thought my 30% gain in a week was down the tubes.

Anyway I've emailed the other online broker to find out for sure about the splits on the CREE bought on the 26th.

Incidently the numbers on the "Island Trading" today (which were all pre split prices yesterday) now show only Pre split prices in the sell column and only POST split prices (< 1/2 of the pre split) in the buy column.

I guess that would seem to indicate that TODAY (27th July) is the first day you DON"T get the split (I sure hope that's right!)
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If it's any comfort, I have seen split shares show up a few days after the split in my account (through E*Trade). Now that I think about it, I probably did buy those shares between the registration date and effective date (however, they were the same day for CREE). Ironically the shares were TBFC (E*Trade is buying them out in a few months).

Ummm... now that I think back to the CREE press release (remembering that it was unusual that the two dates were the same day), they even said tht the shares would not arrive in shareholder accounts until a few days after the split.
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Just talked to my broker and bought in to today. He said that you can buy anytime before it starts trading at the split price (next Monday) and there will be a "due bill" posting on the account for the extra shares. No worries here.
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