People have been known to call splits a cheap trick. But this seems more like hitting a trifecta, although AAPL lost about half when then did a one for one split a few years ago.
Benzilla, what I get is that you are gifted. What's more I really appreciate your ability and willingness to teach and share. My head basically says eff it until all of the facts are in, in this case at the end of June we might know something to really discuss.
You have no idea whether I like you or not. You have no idea whether I want you to post to me or not. But since you think that way, I guess I should keep a greater distance from you.
That is the second time I have posted 2/3, not that that justifies anything.
What Wiki defines is of little value to me since I don't believe Facebook needs to follow Wiki rules. I could make lots of things fit "a one time stock dividend". But to save both of us the trouble of some entangled waste of time, I'll just go with the flow and appreciate your input and knowledge, and look forward to a bulked up account.
The record date might not be available just yet. Here's my understanding fwiw. For 500 shares of CL A and/or B, a person would receive 1000 shares of Class C. Two shares for each owned share. Another detail which I might have misunderstood is that the price at the time of distribution will be cut to 2/3 not 1/3. All of this seems to be somewhat up in the air until the board meets on June 20.
A guy who seemed to have a good sense of what was going on said he was basically thrilled that Jack and Twitter were back together, that Jack would be the guiding Twit light to a glorious destination which could only be outdone in the mind of the Donald. Time can only tell, but here is a reminder from the book of common knowledge: Twitter sits on a very large pot of gold, so large that going under at status quo could take centuries. So, may your cups runneth over as well and may you never run out of PB and J.
Basis points get adjusted so gains maintain the value. Maybe a cheaper price will draw a bigger crowd and future gains are faster, which would be a plus.
Nascar.strong, your post is in one place but not the other. Where the stock will go is a little more confusing. It could stay the course or do something else. Part of me is disappointed in the change, but this is the founders boat not mine, and he's done a pretty nice job navigating so far. I think that shareholders are of major importance to Zuck and I appreciate his collaboration even if it is to fulfill his agenda primarily. This move to split could give all of us a little more leverage, and my primary hope is that we don't get rangebound somewhere between 0 and 100 for years on end. Because trading constantly is not part of the plan. So, full steam ahead and the best to all of us. Now for sleep!
The Motley Fools calls the upcoming a stock dividend. In my mind Zuck is gifting us several times over, potentially, since buyers buy and hang on for the big dividend pay days. So the gap might not fill: Oh happy day! When the stock divi time arrives, we'll just happily float down like jolly kangaroos to a soft landing and our pouches full of FB!
The broker said that if approved, probably an issue for the June 20 meeting, this would be a one time forward 2 for 1 dividend. That doesn't answer your question as to why it's being called a dividend. But it does limit the event to simply a split. I called not knowing whether my shares fell into the category required and both A and B qualify. The broker said that the parameters of the event could be adjusted for more detail.