With a stock split, you make nothing. With a dividend, cash is deposited into your account.
The only benefit of the split is that the stock may attract more investors because it looks cheaper.
I know the common thinking is that a stock price adjusts to compensate for a dividend. This is true in theory, but in practice dividends have very little impact on a stock's price over time. They are a real payout. You will see the stock move to compensate for the dividend when the dividend is paid, but the stock price does not stay depressed because of it. There are record dates for this very reason... so that people are forced to hold the stock rather than to just trade in and out for the dividend.
Lee, the price of the stock at the time of the split should be split evenly by 3. If FB is trading at $300, then you will have 100 'A' shares at $100 per share and 200 'C' shares trading at $100 per share. Just need to get use to having one ticker symbol for 'A' shares and different ticker symbol for the 'C' shares. They will not necessarily trade at the same price between the 'A' shares and 'C'' shares moving forward.
You will see Google's 'A' shares are trading a little higher than their 'C' shares over time. 'C' shares just doesn't have voting rights. And this structure IS for MZ to maintain control. But that's fine by me, we MZ making being in control.
Obviously meant "Google" not "Goggle". I blame auto-correct :)
It is similar to what Google did. The class C shares represent the same ownership as class A shares, but they will have no voting power. Goggle (now Alphabet) has two tickers, GOOG, and GOOGL. GOOG has no voting rights, while GOOGL shares do. The market therefore values GOOG slightly less than GOOGL, and the same is likely to be the case to the Class C versus Class A shares for Facebook.
Zuckerberg has class B shares, which have 10 votes per shares, versus 1 vote per share for A shares. Doing the split will allow him to use class C share as you say, but it will preserver the voting power of his B shares, which (if given away) would massively dilute his voting power.
You will not get B shares. You will get C shares. B shares have 10 votes per share and are held only by insiders, like Zuckerberg.
Google did the similar split. They have 2 symbols GOOG and GOOGL. Every FB share you have will be come 3 shares ( 1 'A'' share and 2 'B' shares)
Just get use to having 2 ticker symbols, one for 'A' shares and different one for the 'C' shares. If you have 1000 shares, you'll end up with 3 thousand shares after the split. Its all good. Google post split at mid 500's traded up to 800's before it setlled. Just my opinion, FB should rise rapidly having the share price at a third per share because of demand for the best growth stock in town.
"The company announced the three-for-one stock split to create a new class of non-voting shares in a filing Wednesday at the same time that it announced first-quarter earnings. With the split, Facebook shareholders will receive two non-voting shares for each single share they hold.
In an earnings season in which other major tech companies could do very little right, Facebook could do no wrong. Natalie DiBlasio
Shareholders will vote on the proposal at the company's annual meeting on June 20.
The move lets Zuckerberg sell Class C shares to fund philanthropic endeavors without losing voting control of Facebook.
Google parent Alphabet made a similar move in 2014 and trades under two stock tickers."
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