Quote:
Originally Posted by lyn2222
Bought John Deere on 11/23/07, settlement date 11/28/07. Just found out stock is splitting 2:1 to owners of record as of 11/26. Guess I missed out. Shares will be issued Monday, 12/3. Question is, my shares will be worth 1/2 after split and I'm going to lose about $85 a share. If I put in a market order to sell the stock at opening bell on 12/3, what will shares be worth? Current price or half? I don't know the time of day the split will be effective and when the stock will be worth half. HELP!!! Can I beat the loss by putting in a sell order now?
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Wow that is a very interesting question to be honest. You should never lose value because you purchased shares at xx price and in between some announcement.
My personal bet is this, since you purchased after the date of shares being split, when the split does go into effect and the stock price is cut in half, you will be refunded half your capital invested to even the playing field.
The best way to handle this is probably to call up your broker and ask them what will happen just to be sure. Again though, I can't see thousands of investors who did the same thing as you being punished for trading during this pending time period!
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