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Motorola split on January 4th, but the date of record was December 21, meaning shareholders owning MOT on that EARLIER date would receive one share of MMI (Motorola Mobility) for every eight shares MOT.
This sounds like a horribly poor mechanic. Logically, I would believe knowing owners would mass sell their MOT shares after Dec 21st to receive MMI for free or as close to it as the market would allow. Yet this did not happen, in fact the stock went up after the date of record. What am I missing? Does this mean that if I buy a stock with a dividend after the date of record, but before the pay date I will still get the dividend?
Thanks in advance!
see:
http://mediacenter.motorola.com/Press-Releases/Motorola-to-Complete-Separation-on-January-4-2011-3528.aspx
The distribution will be made prior to the market open on Jan. 4, 2011 to Motorola, Inc. [to] stockholders of record as of the close of business on Dec. 21, 2010.
This sounds like a horribly poor mechanic. Logically, I would believe knowing owners would mass sell their MOT shares after Dec 21st to receive MMI for free or as close to it as the market would allow. Yet this did not happen, in fact the stock went up after the date of record. What am I missing? Does this mean that if I buy a stock with a dividend after the date of record, but before the pay date I will still get the dividend?
Thanks in advance!
see:
http://mediacenter.motorola.com/Press-Releases/Motorola-to-Complete-Separation-on-January-4-2011-3528.aspx
The distribution will be made prior to the market open on Jan. 4, 2011 to Motorola, Inc. [to] stockholders of record as of the close of business on Dec. 21, 2010.