No worries about DDD, but my Broker may not be handling the split correctly?
If I held my 100 shares on Feb. 15th, I am guaranteed 50 additional shares. So I could have sold this past week, 100 shares at $60 = $6,000. I still receive 50 shares at $37.96 = $1,898 because I held on record date Feb 15th.
So If I would have sold, I would have $7,898. However I didn't sell so now I have 150 shares at $37.96 = $5,694.
I'm not worried about my investment, I'm long, just not sure if Etrade is handling this correctly. I will of course call trade, but just wondering if anyone has any information about this?
Except....During the time after the record date until the payment date, you are selling your shares with "due ills". The "due bills'" are your stock dividends rights which you have also sold (knowing it or not). This is a standard procedure for these types of dividends based on rules of the exchanges. Option strike prices are also adjusted. Think about it....as you say, if you has sold (without these rules in place) you would have been (unjustly) rewarded with a free $1,898.
My broker has actually fixed my account and is now showing my dividend shares. So since I held 100 shares on the 15th, I now have 150 shares at $56.95. Tomorrow they will adjust my shares and PPS to the 3 for 2 split price. So Monday I should have 225 shares at $37.96.
I understand how a stock split works. DDD's website specifically says:
Q3) What is the record date? The record date for the stock split is February 15, 2013. If you were a shareholder as of the market close on the record date, you are entitled to receive the additional shares.
Q4) What is the payment date? The payment date for the additional shares is February 22, 2013. If shares are registered in your name as of the market close on the record date, you are receiving the shares subject to the split.
Q5) What is the ex-split date? The ex-split date is February 25, 2013. When the market opens on February 25, 2013, one trading day after the payment date, shares of DDD will begin trading on the NYSE at the new split-adjusted price.
Q6) What happens if I sold some of my shares before the record date? If you sold your shares before the record date, you were not entitled to receive the additional split shares.