Chilly Posted July 29, 2008 Posted July 29, 2008 I'm an economic retard, but I've done some google searches and haven't found anything on this. I saw this today: XM shareholders will receive 4.6 shares of SIRIUS common stock for each share of XM. How do you deal with a fraction of a stock? Do they round down/up?
DrDawkinstein Posted July 29, 2008 Posted July 29, 2008 pretty sure theres no rounding involved (but im completely guessing) id assume that if i had 4.6 shares of something worth $1/share, then id have $4.60 again, no idea what im talking about here. just typing.
Pete Posted July 29, 2008 Posted July 29, 2008 pretty sure theres no rounding involved (but im completely guessing) id assume that if i had 4.6 shares of something worth $1/share, then id have $4.60 again, no idea what im talking about here. just typing. that is correct I believe
BarkLessWagMore Posted July 29, 2008 Posted July 29, 2008 I'm an economic retard, but I've done some google searches and haven't found anything on this. I saw this today: XM shareholders will receive 4.6 shares of SIRIUS common stock for each share of XM. How do you deal with a fraction of a stock? Do they round down/up? After they convert the shares a stock certificate is issued for the whole shares and the fractional share is paid in cash.
Chilly Posted July 29, 2008 Author Posted July 29, 2008 After they convert the shares a stock certificate is issued for the whole shares and the fractional share is paid in cash. Sweet, thats what I wanted to know. Thanks a bunch.
Wacka Posted July 30, 2008 Posted July 30, 2008 That's what happened to me with the company I used to work for. They laid off 50% (including me) and a year later went public (they couldn't raise any more venture capital). Before they went public, they had a 7:1 reverse split (70 shares at $1 = 10 shares at $7). The fraction left over was given to me in a check(~$5). I sold them as quick as I could (6 months later) at about $5.40. They never got higher than that. My $1k ended up being $5K. I tracked it and it was about $3 for a while. One day it jumps to $4. They were bought out by a another company.
HopsGuy Posted July 30, 2008 Posted July 30, 2008 I would love a fraction of Berkshire Hathaway stock! You could buy the Class B shares. It represents about 1/30th of a Class A share.
Jon in Pasadena Posted July 30, 2008 Posted July 30, 2008 There are some investment products like ING's sharebuilder* which allow you purchase stock shares in fractional increments. I believe ETRADE* has (or had?) something similar. * I am not recommending either of these products since I've never used or evaluated them. Just noting that they exist.
mead107 Posted July 30, 2008 Posted July 30, 2008 Which would you rather have 2,000,000 shares @ $4.00 or $4.60 ????
Sen. John Blutarsky Posted July 30, 2008 Posted July 30, 2008 Which would you rather have 2,000,000 shares @ $4.00 or $4.60 ???? 2,000,000 shares of exxonMobil I'll take, if we're talking about 2,000,000 shares of Enron I'll take the 4.60.
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