stock split questions

[Clark Jones]

Dave Peticolas wrote:
> 
> Clark Jones writes:
> > Bill Carlson wrote:
> > >
> > > On Tue, Jan 30, 2001 at 02:44:01AM -0800, Dave Peticolas wrote:
> > > >
> > > > 1.  Are stock splits always reported as the ratio of two integers?
> > >
> > > I have never seen anything but this.
> >
> > It's not all that unusual for certain types of "companies" to have a
> > "fractional split", e.g., 1.003/1, often called a "stock dividend".
> 
> Is that actually reported as a split? In the funds I have owned, you
> could elect to have your dividends used to purchase more shares, but
> that wasn't a 'split'.

Remember that tax laws change from time to time, and that many folks reading
this aren't subject to the tender mercies of the I.R.S.  :-)

I think that there may have been a tax law change since the last time I saw
it actually happen.  I recall something about it being a fund that had a
"stated value" for the shares, i.e., something like a "money market" fund.

> Can mutual funds split?

Why not?  There are reasons for wanting to keep your share prices in a
certain range -- that is one of the reasons for splits.

And another thing that needs to be considered are "negative splits" -- e.g.,
a "two for three" or "one for two" split -- sometimes this happens when
a company decides that the share price is too low.

						Clark
-- 
Disclaimer:  The opinions expressed herein are mine and not necessarily
those of anyone else.  (As if anyone else would want them!)

Internet: jones@inficad.com		RF: KI7TU
ICBM: 33 22' 01" N 111 43' 52" W	Home Page: www.inficad.com/~jones