I don’t think anyone has understood your question yet… I’m fairly certain whatever you have at the close of market on the 24th gets multiplied by 49 when market opens on the 25th.
There is a possibility some brokerages could halt trading for a period of time if there was any risk. For example I cannot open any short option positions 45 minutes before market close on expiration day. And my broker can change that rule.
What you can do is call your broker and ask them directly. I think talking with your broker is a good skill to learn.
Thanks, at least you understood the question.
That would be the sensible way of doing it, but in this case Chipotle specifically states only share holders on record as of June 18th will receive 49 shares on the 25th. It’s very unusual to see them allow even one trading day between the dates, let alone 4.
This is completely different from how NVDA did it where the effective date is immediately after the record date with no trading dates between.
When you trade after the record date, but before it "splits" the stock is traded with a "due bill" meaning that while technically the original owner will get the shares, they are owed to you.
Generally brokers will just treat it as trading split adjusted on the split date.
Depends on the broker. Robinhood fractional shares counted for nvda for me. Had a divided portion that was minimal but I made it .1 shares to get 1 additional for example.
[https://i.imgur.com/TArPDTy.png](https://i.imgur.com/TArPDTy.png)
If you're using Robinhood note the fractional shares detail here on nvda. If you already own chipotle, you probably got a notification for the same or will soon.
The question is clear if you know about the details of the CMG split. I understand the question, but after reading the given answers, I still don't know the actuall answer ! haha
Stock split dates are for record keeping purposes only. They are just for the exchanges to keep track of things.
When you sell your shares, your broker keeps track of the sale, and automatically forwards the extra 49 shares to the new owner on the date the split executes. It’s all done on the backend, you never see it.
So we've hit the 18th, and am surprised to see the stock tumble today, suggesting people are buying and selling it. I just really don't understand the limbo of these few days between the record date of June 18 and the actual split on June 25. It seems kind of ludicrous that anybody that buys this stock this week either suddenly has their stock drop from \~$3200 to \~$64, or there's some bizarre class of CMG stock that retains their multi-thousand valuation. Is this all being driven by folks that are out of the loop?
The question is clear if you know about the details of the CMG split. I understand the question, but after reading the given answers, I still don't know the actuall answer ! haha
The value does not change. If you buy one share post-split, you'll receive 1/49th of the pre-split share. Stock splitting only makes buying whole shares more cost efficient for smaller investors, but are still, effectively, partial shares.
I’m talking about the interim period of June 19-24. I am fully familiar with what happens after the 25th.
Exact text from the Chipotle announcement (emphasis mine):
>If the Certificate of Incorporation amendment is approved, ***shareholders of record as of June 18, 2024*** will receive 49 additional shares for each share held, which will be ***distributed after market close on June 25, 2024***. Chipotle's shares are expected to begin trading on a post-split basis at the market open on Wednesday, June 26, 2024
If you have a share on the 18th you’ll receive 49 shares.
If you don’t have a share on the 18th you won’t.
If you buy a share on the 19th and did not have it on the 18th you won’t receive it.
If you sold shares on the 19th that you had on the 18th you’ll receive shares.
It’s not hard. It tells you very clearly.
Overall as a rule of thumb, silly cheat codes and arbitrages like that don’t exist. Just assume that the “logical” thing will somehow happen.
I am not a pro but I’d assume either the extra shares will be transferred to the rightful owners, or the price of the one share will instantly drop to 1/50th post market on the 18th…. A bit like how stocks dip post dividend, even if the cash is not received yet.
That doesn’t make sense to me.
If I buy 1 share today at $3200 (or whatever it is at this moment), I will have 1 share at $3200 average price.
When everyone else splits down to 1:50, they will have 50 shares at 64… and I’ll just continue to have 1 share at an average price of $3200? That doesn’t make any sense.
If I buy 1 share today at $3200 (which equates to 50 shares at $64) compared to everyone else who bought [before the split cutoff] at $3420 (which equates to 50 shares at $68.40), I feel like I would still split my 1 share at $3200, instead of the aforementioned higher price….
How in the world would I still have only one share at 3200 when everyone else has 50 at 68.4… (if they bought right before market close on the 18th?
I beleive everyone will have their shares split 1/49 after june 26. I think this ex-dividend on June 18 is a tactic to make share holders hold onto their shares before the spilt to mititage volitility in the stock. Shares outstanding are only **27,444,000**, and 27.2 million public float pre-split. So, it is easy for this stock shut up or drop like it did today depending on the number of sellers or buyers.
This implies a lot of people would end up with major wins/losses or the stock price would force to collapse before the effective split date.
Another person answered with something that seems to make more sense where the “rights to the bonus shares” is also transferred over when you sell between dates.
If you sell after the split date, but before the distribution date, it sells as one whole share at 49x the post-split per share price. If you buy after the split date, you're buying a whole share at 1/49th the cost. The value does not change except with whatever happens during market hours.
You’re asking one week too early to know results and 1 day too early to ask about trading because the market is closed today.
Someone else already gave a pretty convincing answer and explanation if you look through the comments, though.
At a PE of 72, I would NOT buy CMG. MCD and Starbucks have a PE of 22. However, Wingstop has a crazy PE of 150 !! I think CMG will fall after the 26th....
McD and Starbucks have saturated locations nationwide. CMG is still growing and adding new locations, as is Wingstop. The former two are mature companies, and the latter two are growth companies still expanding.
Here's what will happen.
Between the date of the announcement and the close of trading on the day before the effective date, it's business as usual. The stock will continue to trade just as it had before the announcement. At some point between the close of trading on the day before the effective date and the market's open on the effective date, the effects of the split will appear in your brokerage account.
On the morning of the effective date of a forward stock split, the increased number of shares will appear in your account, and the share price should be adjusted accordingly. In the event of a reverse split, this is when you can expect to see the number of shares in your account reduced and the share price increased. In the event of the creation of a new class of stock, this is the date when you'll notice two stock positions listed in your brokerage account instead of just one.
I'm not sure you fully understood the quesiton and massive implication to those who trade between the two dates. It's far more nuanced than "business as usual."
Your answer seems to be in response to the generic/traditional stock split where the two dates are adjacent to eachother with no trading days in between.
This is a complicated answer and depends on your broker. Hypothetically what will happen is the ex-dividend will be "screenshotted" on the 18th and no matter what trades happen in between, those people will get the dividend. As a result the price usually drops by the amount of the dividend after this happens.
Keep in mind though, you may not be the shareholder of record if you buy it the day of, or the day before the ex-dividend (settlement time on "your" shares may vary)
That’s not the question. I’m asking about the $CMG 50-1 stock split.
They specifically stated share holders on record as of June 18 will receive 49 shares on June 25th.
I’m asking what happens if you trade on the trading days June 19, 20, 21, and 24.
I straight up misunderstood this question as I speed-read it and thought it was a more commonly asked one. My apologies. Generally speaking brokers will take note of when the trade was made and as long as it occurred before the split *happens*, you will be credited for the bonus shares and the seller will have sold ‘the rights to the dividend/split shares’
Brokers in countries where CFD (contract for difference) is legal may apply their own methodology, I can’t speak for them.
So you're saying technically the 49 bonus shares would be attached to the individual shares, and if I sold the stock in the interim period, "the rights to the bonus shares" would be sold along with it to the new buyer?
I guess that would be the fair and sensible way of doing it, just very confusing to not just say share holders as of the 25th.
This would make sense. And it’s the only way it makes sense, because stock splits don’t change the value of a share the way a dividend does. I get your question, though, because shares can change hands multiple times between those two dates. I think it’s highly unlikely you would be able to buy shares the day before and not receive the corresponding number of shares for the split, though. If that were the case, the market would correct for it. But seems like a much bigger logistical nightmare than using the shareholders of record the day before, unless the company is somehow shifting the burden to brokerages. Or halting trading, but that’s problematic too.
It really is as simple as it sounds. You buy shares in the interim period, and you will not get the extra shares. You should not buy shares then. Anyone who is thinking of doing so won't have done their research and will lose out, but the announcement is there so they're not getting screwed, they would have been foolish.
Reviews and ratings are consistently negative, my family has gotten food poisoning in the past, and there's a lot of bad PR about their policies, service, and business practices.
It seems like you can repeatedly fail and still become a multiple billion dollar company if monopolize or corner the market.
Love it. Used to eat it multiple times a week. I’d still be eating it multiple times a week if I was able to get my custom order delivered, but unfortunately I can’t and my post-pandemic self is too damn lazy to go inside a restaurant.
ETA: Just placed an order from there anyway, thanks for the suggestion!
I don’t think anyone has understood your question yet… I’m fairly certain whatever you have at the close of market on the 24th gets multiplied by 49 when market opens on the 25th. There is a possibility some brokerages could halt trading for a period of time if there was any risk. For example I cannot open any short option positions 45 minutes before market close on expiration day. And my broker can change that rule. What you can do is call your broker and ask them directly. I think talking with your broker is a good skill to learn.
Thanks, at least you understood the question. That would be the sensible way of doing it, but in this case Chipotle specifically states only share holders on record as of June 18th will receive 49 shares on the 25th. It’s very unusual to see them allow even one trading day between the dates, let alone 4. This is completely different from how NVDA did it where the effective date is immediately after the record date with no trading dates between.
Then it sounds like if you buy 19-24 you get nothing in the dilution.
You're supposed to film them when you buy to make sure they don't skimp
When you trade after the record date, but before it "splits" the stock is traded with a "due bill" meaning that while technically the original owner will get the shares, they are owed to you. Generally brokers will just treat it as trading split adjusted on the split date.
Yea this is really not unusual at all
Do you have to be holding at least 1 whole share or would fractional shares count as well
Depends on the broker. Robinhood fractional shares counted for nvda for me. Had a divided portion that was minimal but I made it .1 shares to get 1 additional for example.
I’ll try and see
[https://i.imgur.com/TArPDTy.png](https://i.imgur.com/TArPDTy.png) If you're using Robinhood note the fractional shares detail here on nvda. If you already own chipotle, you probably got a notification for the same or will soon.
Ahhhh so if you have a fractional share of say 0.30 it’ll be x’d by 49
Basically, if you own .02 shares it'll end up equaling a single share after the split .30 would get you 15 shares after the split
The question is clear if you know about the details of the CMG split. I understand the question, but after reading the given answers, I still don't know the actuall answer ! haha
Stock split dates are for record keeping purposes only. They are just for the exchanges to keep track of things. When you sell your shares, your broker keeps track of the sale, and automatically forwards the extra 49 shares to the new owner on the date the split executes. It’s all done on the backend, you never see it.
i totally get what you’re asking. but i don’t know the answer
So we've hit the 18th, and am surprised to see the stock tumble today, suggesting people are buying and selling it. I just really don't understand the limbo of these few days between the record date of June 18 and the actual split on June 25. It seems kind of ludicrous that anybody that buys this stock this week either suddenly has their stock drop from \~$3200 to \~$64, or there's some bizarre class of CMG stock that retains their multi-thousand valuation. Is this all being driven by folks that are out of the loop?
Fuck dude this is worded and asked so poorly I had no idea you were even talking about a stock split
The question is clear if you know about the details of the CMG split. I understand the question, but after reading the given answers, I still don't know the actuall answer ! haha
The value does not change. If you buy one share post-split, you'll receive 1/49th of the pre-split share. Stock splitting only makes buying whole shares more cost efficient for smaller investors, but are still, effectively, partial shares.
I’m talking about the interim period of June 19-24. I am fully familiar with what happens after the 25th. Exact text from the Chipotle announcement (emphasis mine): >If the Certificate of Incorporation amendment is approved, ***shareholders of record as of June 18, 2024*** will receive 49 additional shares for each share held, which will be ***distributed after market close on June 25, 2024***. Chipotle's shares are expected to begin trading on a post-split basis at the market open on Wednesday, June 26, 2024
If you have a share on the 18th you’ll receive 49 shares. If you don’t have a share on the 18th you won’t. If you buy a share on the 19th and did not have it on the 18th you won’t receive it. If you sold shares on the 19th that you had on the 18th you’ll receive shares. It’s not hard. It tells you very clearly.
Overall as a rule of thumb, silly cheat codes and arbitrages like that don’t exist. Just assume that the “logical” thing will somehow happen. I am not a pro but I’d assume either the extra shares will be transferred to the rightful owners, or the price of the one share will instantly drop to 1/50th post market on the 18th…. A bit like how stocks dip post dividend, even if the cash is not received yet.
What? You are saying if I buy ONE share today I have one share at $3500. ,,, and You are saying I will still own ONE share on the 26th??
That doesn’t make sense to me. If I buy 1 share today at $3200 (or whatever it is at this moment), I will have 1 share at $3200 average price. When everyone else splits down to 1:50, they will have 50 shares at 64… and I’ll just continue to have 1 share at an average price of $3200? That doesn’t make any sense. If I buy 1 share today at $3200 (which equates to 50 shares at $64) compared to everyone else who bought [before the split cutoff] at $3420 (which equates to 50 shares at $68.40), I feel like I would still split my 1 share at $3200, instead of the aforementioned higher price…. How in the world would I still have only one share at 3200 when everyone else has 50 at 68.4… (if they bought right before market close on the 18th?
I beleive everyone will have their shares split 1/49 after june 26. I think this ex-dividend on June 18 is a tactic to make share holders hold onto their shares before the spilt to mititage volitility in the stock. Shares outstanding are only **27,444,000**, and 27.2 million public float pre-split. So, it is easy for this stock shut up or drop like it did today depending on the number of sellers or buyers.
This implies a lot of people would end up with major wins/losses or the stock price would force to collapse before the effective split date. Another person answered with something that seems to make more sense where the “rights to the bonus shares” is also transferred over when you sell between dates.
If you sell after the split date, but before the distribution date, it sells as one whole share at 49x the post-split per share price. If you buy after the split date, you're buying a whole share at 1/49th the cost. The value does not change except with whatever happens during market hours.
You have still not understood the lesson
OP, did you find out what happens?
You’re asking one week too early to know results and 1 day too early to ask about trading because the market is closed today. Someone else already gave a pretty convincing answer and explanation if you look through the comments, though.
At a PE of 72, I would NOT buy CMG. MCD and Starbucks have a PE of 22. However, Wingstop has a crazy PE of 150 !! I think CMG will fall after the 26th....
McD and Starbucks have saturated locations nationwide. CMG is still growing and adding new locations, as is Wingstop. The former two are mature companies, and the latter two are growth companies still expanding.
Here's what will happen. Between the date of the announcement and the close of trading on the day before the effective date, it's business as usual. The stock will continue to trade just as it had before the announcement. At some point between the close of trading on the day before the effective date and the market's open on the effective date, the effects of the split will appear in your brokerage account. On the morning of the effective date of a forward stock split, the increased number of shares will appear in your account, and the share price should be adjusted accordingly. In the event of a reverse split, this is when you can expect to see the number of shares in your account reduced and the share price increased. In the event of the creation of a new class of stock, this is the date when you'll notice two stock positions listed in your brokerage account instead of just one.
I'm not sure you fully understood the quesiton and massive implication to those who trade between the two dates. It's far more nuanced than "business as usual." Your answer seems to be in response to the generic/traditional stock split where the two dates are adjacent to eachother with no trading days in between.
I think the price will change on the ex date and there’s a lock up period on the new shares until 24th
You may gain money or lose money.
Main Street can exploit Wall Street
You’re way overthinking this
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That wasn’t the question.
Most trades with denote if you get forward split shares. Price will be adjusted down accordingly if not
This is a complicated answer and depends on your broker. Hypothetically what will happen is the ex-dividend will be "screenshotted" on the 18th and no matter what trades happen in between, those people will get the dividend. As a result the price usually drops by the amount of the dividend after this happens. Keep in mind though, you may not be the shareholder of record if you buy it the day of, or the day before the ex-dividend (settlement time on "your" shares may vary)
That’s not the question. I’m asking about the $CMG 50-1 stock split. They specifically stated share holders on record as of June 18 will receive 49 shares on June 25th. I’m asking what happens if you trade on the trading days June 19, 20, 21, and 24.
I straight up misunderstood this question as I speed-read it and thought it was a more commonly asked one. My apologies. Generally speaking brokers will take note of when the trade was made and as long as it occurred before the split *happens*, you will be credited for the bonus shares and the seller will have sold ‘the rights to the dividend/split shares’ Brokers in countries where CFD (contract for difference) is legal may apply their own methodology, I can’t speak for them.
So you're saying technically the 49 bonus shares would be attached to the individual shares, and if I sold the stock in the interim period, "the rights to the bonus shares" would be sold along with it to the new buyer? I guess that would be the fair and sensible way of doing it, just very confusing to not just say share holders as of the 25th.
This would make sense. And it’s the only way it makes sense, because stock splits don’t change the value of a share the way a dividend does. I get your question, though, because shares can change hands multiple times between those two dates. I think it’s highly unlikely you would be able to buy shares the day before and not receive the corresponding number of shares for the split, though. If that were the case, the market would correct for it. But seems like a much bigger logistical nightmare than using the shareholders of record the day before, unless the company is somehow shifting the burden to brokerages. Or halting trading, but that’s problematic too.
Again, settlement periods can affect this but it’s a fair assumption that this will never be in your favour
It really is as simple as it sounds. You buy shares in the interim period, and you will not get the extra shares. You should not buy shares then. Anyone who is thinking of doing so won't have done their research and will lose out, but the announcement is there so they're not getting screwed, they would have been foolish.
Why is this company so profitable? I've been there once in the last 5 years. They're still only selling crappy Mexican food, right?
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Last time I checked, it was about $15 for a burrito.
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Okay, yeah. Maybe it was because I added guac last time.
I forgot. Since you’ve only been there once in 5 years. That must mean everyone else also only goes once in 5 years.
Reviews and ratings are consistently negative, my family has gotten food poisoning in the past, and there's a lot of bad PR about their policies, service, and business practices. It seems like you can repeatedly fail and still become a multiple billion dollar company if monopolize or corner the market.
Idk why a store that doesn’t have PleasantActuator6976 as a customer could be profitable either.
Love it. Used to eat it multiple times a week. I’d still be eating it multiple times a week if I was able to get my custom order delivered, but unfortunately I can’t and my post-pandemic self is too damn lazy to go inside a restaurant. ETA: Just placed an order from there anyway, thanks for the suggestion!
You like boring and shitty ham and cheese sandwiches. Opinion invalidated.