TSLA's SEC filing for the stock dividend says:
“Each stockholder of record on August 17, 2022 will receive a dividend of two additional shares of common stock for each then-held share, to be distributed after close of trading on August 24, 2022.”
I understand splits and dividends, but I don't understand the technical working of a dividend split with an ex-dividend date.
How can you have an ex-dividend date for a split? Wouldn't that mean you could sell your shares after August 17th and then still get the additional shares? Wouldn't that also mean that anyone purchasing TSLA between the 17th and 24th would simply have the value of their share cut without receiving the additional shares? And if no, then why have an ex-div date at all? Help me understand how this isn't just a regular split that will give everyone additional shares whether they hold them before or after the 17th. I've read everything I can find and can't seem to find anything that accounts for the idea of an ex-dividend date for what is effectively a split.
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