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Hospira Inc. Message Board

  • gmob1989 gmob1989 Oct 16, 2004 3:55 PM Flag


    This may be a silly question but can anyone tell why Hospira is initiating this program and how does it benefit them?

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    • You might want to scroll down and read the prior posts discussing this. Briefly, it's a common practice after a stock spin-off (Hospira was spun off from Abbot). It's ostensibly for the benefit of shareholders. For example, if you owned 100 shares of ABT pre-spinoff, you got (I believe) something like 6 shares of HSP. The odd-lot program gives people who don't want those six shares, or some other "odd" number of shares, sitting in their account to sell them off. It's not really a great benefit - it's more of a tradition that has carried over from the old days when a brokerage firm would charge you obscenely high fees for dealing with non-standard (i.e., not divisible by 100) lots of shares.