Posted by elementsix on 14th of Aug 2020 at 02:29 pm
TSLA Stock Split Question - Have a question regarding this stock
split being handled as a DIVIDEND.
Tesla IR:Each stockholder of record on
August 21, 2020 will receive a
dividend of four additional sharesof common stock
for each then-held share, to be
distributedafter close of trading on
August 28, 2020. Trading will begin on a stock
split-adjusted basis on August 31, 2020.
If I own shares on 8/21 and then sell them on 8/24, my
understanding is that I still receive the dividend, in this case
stock (on 8/28). Is that correct?
So if I buy shares before the ex-div date and then sell to
recoup the cash a day or two later, wouldn't I still receive the 4
split-adjusted shares on the 28th?
Posted by alslayton on 14th of Aug 2020 at 03:30 pm
The shares you buy prior to the Ex Div are entitled to the
dividend. When you sell those shares post Ex Div but prior to
the adjusted Trading level your broker will deliver those
shares to the Buy side Broker and the split shares will follow.
If the dates you posted are correct, the shares you sell will
receive the Pre Split price.
Posted by elementsix on 14th of Aug 2020 at 04:44 pm
Thanks for that explanation alslayton. I know there's know free
money but I wasn't able to find info anywhere on the interwebs as
to how that works. Thx
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
TSLA Stock Split Question -
Posted by elementsix on 14th of Aug 2020 at 02:29 pm
TSLA Stock Split Question - Have a question regarding this stock split being handled as a DIVIDEND.
Tesla IR:Each stockholder of record on August 21, 2020 will receive a dividend of four additional sharesof common stock for each then-held share, to be distributedafter close of trading on August 28, 2020. Trading will begin on a stock split-adjusted basis on August 31, 2020.
If I own shares on 8/21 and then sell them on 8/24, my understanding is that I still receive the dividend, in this case stock (on 8/28). Is that correct?
So if I buy shares before the ex-div date and then sell to recoup the cash a day or two later, wouldn't I still receive the 4 split-adjusted shares on the 28th?
This can't work but I'm not clear on why not.
The shares you buy prior
Posted by alslayton on 14th of Aug 2020 at 03:30 pm
The shares you buy prior to the Ex Div are entitled to the dividend. When you sell those shares post Ex Div but prior to the adjusted Trading level your broker will deliver those shares to the Buy side Broker and the split shares will follow. If the dates you posted are correct, the shares you sell will receive the Pre Split price.
There is no free money in this game.
Thanks for that explanation alslayton.
Posted by elementsix on 14th of Aug 2020 at 04:44 pm
Thanks for that explanation alslayton. I know there's know free money but I wasn't able to find info anywhere on the interwebs as to how that works. Thx