OU's Trading Corner (OTC)/ Now CDN Stocks and US Blue Chips (sorta)

[vinnyh]

hey ya'll. FSIJ FSing is a big surprise to me....

only reason i can think of for doing so would be to pay Mr. Karney right away. here's what im thinking: capital stock is valued at par (.0001 for FSIJ), and a forward split would in turn put a market value on FSIJ at or near the par value. thus, since they are going to compensate Mr. Karney for his new CEO position in capital stock, he could sell his shares for what they are actually worth, if not more. point being, if he wanted his money (however much it is) right away, this was a great way to do it.

my theory, however, would only hold water if in fact the par value is not also affected by the split. anyone know the answer to that one? :-P