otherworldtrader@yahoo.com
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If you owned 1000 shares divide 1000 by 2 which is 500 which is how many new shares you have.You now have 1500 shares.
It means for each 2 shares they company is giving you 1 more share.
That is a forward split, in a reverse split you would lose 500 shares.
I've ben hit by a 20 to one reverse split and it sucks:):).
Your split is the good one. |
Alan
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2 for 1 is just what it says...you get 2 shares for 1. Turn it into a fraction...multiply by the number of shares you have, and that is the number of shares you have now. 2/1 * 1,000 = 2,000. 3/2* 1,000 = 1,500. Of course, the price of the stock will also adjust. If it was $60 before, it will be $30 after a 2/1 split and $40 after a 3/2 split. So
1,000 shares x $60 = $60,000
1,500 shares x $40 = $60,000
2,000 shares x $30 = $60,000
In theory, splits are like dividing pieces of pie into smaller pieces. You now have more pieces, but it is still the same amount of pie. |
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