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Bought a stock after the record date for it's spin off:?
I bought ConocoPhillips very close to the record date to get the spin off of Phillips 66 (which took place today). I do not believe I will get the shares in PSX, but my shares of ConocoPhillips are now trading much lower than what I bought them for.
Does anyone know if I get a cash payment to make up for the fact that I didn't get the PSX shares, as I feel that their is no way I would get screwed?
Thanks!
Technically I bought the stock before the record date, but the settlement date is after the record date, so I straddled the record date.
And to the person who said to never buy spinoffs, because you don't make money, you're simply wrong. There is value to be made after the new company is spun off. For example, around the record date, COP was trading for $72, and after the spinoff date, the two companies were trading for a combined value of $80. So this spinoff gave investors $8 worth of value.
3 Answers
- Eddie WLv 79 years ago
You should have read the detail of the spin off. There are ways such as, 1 for 1, meaning you'd get 1 share of both stocks, or 1 for a fraction, or fractions of both stocks. Either way, spin off never translate to giving you money.
Do you have any idea why a company wants to spin off a sector? Very simple, usually one of the sectors is dying and the core would not be dragged down by the dying one.
- 9 years ago
Go on the Investor page for Conoco and email the relations person for an accurate answer. I'm sure they have a form response and are busy but will get back to you.
- underexposed...Lv 79 years ago
why would you expect anything if you bought the shares AFTER the record date? That is why they set a record date in the first place!
