A perfect example is occuring right now. There's a company called Ebix that has an upcoming split. Their 'record date' was on August 4, the split takes place at end of August. It's a 3:1 split, stock price now is around $110.
From my limited knowledge of splits, only stock purchased before the record date are 'eligible' for the split. What does this mean?
So if I purchased a stock today (after the record date), and the split occured, would my single $110 stock change into a single ~$35 stock?
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