NAPCO Security Systems, Inc., (Nasdaq: NSSC), one of the world's leading suppliers of high performance electronic security equipment for over 30 years, today explained the effect of its recently declared 3-for-2 stock split.
The record date was December 14, 2005 and the distribution date is December 28, 2005. Moreover, the proportionate changes to the price per share and number of shares outstanding should be reflected at the start of trading on December 29, 2005. However, as noted by NAPCO's Chairman and CEO, Richard Soloway, "the shares bought after the record date of December 14, 2005 entitles the new owner to receive the distribution. The seller has sold the right to receive the distribution if he sells before the ex-date (December 29, 2005), when the price is adjusted to reflect the split."
As a hypothetical example, if 100 shares are purchased at a price of $15 per share between December 15th and December 28th, the buyer would own 150 shares after the distribution date, which would be valued, excluding market fluctuations, at a price of $10 per share beginning at the start of trading on December 29, 2005. In both instances, the value would be $1,500.
If you wish a further clarification, please contact Kevin Buchel, Senior VP at (631) 842-9400 ext. 120
For additional information on NAPCO, please visit the Company's web site at www.napcosecurity.com.