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
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