Chuck, err I mean Caitlyn, where have you been all day?
For over 10 years the fake has claimed the real Clarify was That Man. Lately, he dresses in That Man's ID but is actually saying he is That Man who wants to marry me! Too funny to see my Bean Team's tiny little beans in such a twist. Fact is, no one will marry me because my Bean Team is too busy showering men at Ripples. You can see it in their every post. Not sure why my Bean Team wants to crash ebay by being daily publicly ridiculed gays but there it is. As the greatest poster of all time used to say "That's the way it is!" And it is....
Poor Sullied! Did some mean man kick out little Johnie Cakes in the old man Ripples guzzling gums and you start chattering the made up name code for you wanting multiple penii again? You ARE the dp queen.
I'm still enjoying my long extended weekends (a rich man's prerogative) but told my lawn service to text this in if the little Ripples Troll Team had crashed ebay's $60 while they chatter that long ago made up name (which we ALL know is their Ripples cODE for gayly calling out for manly members, if you know what I mean and I know that you do! Team took it really hard at Ripples and it has caused them to melt daily up here for 15 long wasted years which has made Alumni richer than even our wildest dreams. Which would you rather be: we cool cats, or those loser rats? A troll is as a troll does. Funniest part:: their actions will cause them to burn eternally while they whine a made up name. Too funny. They long ago flunked psy op 101 and now jUST have to sit in their own filth. They like that. LOL@
" 'The Supreme Court says Johnie and I can finally marry'
I knew you were obsessed with John, but I never realized you wanted to marry him. From what I've read on this board in the past, John doesn't go for guys like you do. Hope this helps."
"The Supreme Court says Johnie and I can finally marry"
I knew you were obsessed with John, but I never realized you wanted to marry him. From what I've read on this board in the past, John doesn't go for guys like you do. Hope this helps.
Yes that is what will happen--It is possible that the market will view the value of the two
separate businesses to be greater or less than that of the pre spin-off ebay in which case the value will be greater or less than the pre spin-off ebay share.
"A little clarification. You have to be an owner of ebay stock by the end of the July 8th trading day to get the 1/1 share of paypal."
No. Ebay will distribute the shares of PayPal to all owners of record as of July 8, but that's not what determines who ultimately gets the spinoff. The ex-date for the spinoff is July 20, so anyone who buys the stock before July 20 and holds until that day gets the spinoff. That means you can buy as late as July 17 and receive the distribution. But all shares of Ebay stock traded from July 6th through July 17 will have due bills attached obligating the seller to forward the spinoff distribution to the buyers.
The due bill process is handled entirely by the brokers; Ebay has no role in the process, so its statement that it will pay the distribution to all shareholders of record as of July 8 is entirely accurate, though incomplete. That's why the company said in its June 26 press release, "eBay stockholders who hold common stock on the record date and decide to sell any of their common stock before the distribution date should consult with their stockbroker, bank or other nominee to understand whether the shares of eBay common stock will be sold with or without the entitlement to PayPal common stock pursuant to the distribution."
If sold the regular way, under the symbol EBAY, before the ex-date of July 20, the seller will also be selling his right to the spinoff, as the buyer will be buying that right. If sold in the ex-distribution market before the ex-date of July 20, under the symbol EBAY-WI, the seller retains the right to the spinoff, but will receive significantly less per share for the sale.
This is all standard procedure; nothing unusual about it.
"But what happens to the ebay share price ? Will it drop reflecting that the value of the paypal assets are separate?"
"If say Paypal was half the value would Ebay sh price drop to $30?"
Yes. PayPal will start trading on a when-issued basis on July 6, two weeks before the spinoff is effected. That will establish the fair market value and its closing price on July 17 will be deducted from the price of Ebay.
But what happens to the ebay share price ? Will it drop reflecting that the value of the paypal assets are separate? If say Paypal was half the value would Ebay sh price drop to $30?
"So ebay owners get one share of paypal per each share of ebay owned as long as they own ebay by July 7th I think it is"
The wording is confusing with spinoffs, as you don't need to be a shareholder of record on the record date to get the spinoff. You need to have bought EBAY no later than the distribution date, July 17. As with all distributions, buy before the ex-date and get the distribution. The ex-date for the PayPal distribution is July 20.
"Will these paypal shares given to ebay owners be in a class of its own?"
No, the press release of June 26 tells you that they will be common shares.
"How will these shares dilute the price of paypal or will they?"
No, they won't. Ebay shareholders already own PayPal through ownership of Ebay. After the spinoff they'll own the same proportion of PayPal through PayPal shares.
"Does this mean that there will be less shares offered in the open market because so many will be held by ebay owners?"
This is not an IPO, it is a spinoff. All the shares of PayPal will go to Ebay shareholders. All the shares traded in the open market will have originally come from Ebay shareholders who have sold their PayPal stock.
"Will they be the exact same thing because ebay owners who get paypal shares will actively trade their stock on the IPO day?"
There will be only one class of shares, common, and they will be trading before the spinoff, in the when-issued market. The same press release tells you that too.
"What I can not seem to find the answer too, is all share holders on July 7 of EBAY get shares of Paypal,"
No, all shareholders of record as of July 8 get the spinoff.
"what happens if on July 8th or 9th I decide to sell my ebay?"
That depends on whether you sell them in the ex-distribution market under the symbol EBAY-WI or the regular way under the normal symbol. If you sell them in the ex-distribution market you will get the spinoff. If you sell them the regular way, you won't get the spinoff, because the ex-date for the distribution, as with all stock dividends, is the first business day after the distribution date, or July 20.
Of course if you sell in the ex-distribution market you'll get a lot lower price.
"Is it like a dividend that as long as you hold it one day before the exdiv date, you sell the day after the exdiv and still get the dividend?"
Yes, but remember, the ex-date for spinoffs is not two days before the record date, it's one day after the distribution date. (And you don't have to wait until the day after the ex-date to sell and keep the distribution; you can sell on the ex-date.)