3 Things You Need to Know If You Buy General Electric Today
By now, most General Electric (NYSE: GE) investors will likely know that the company is about to split into two parts. GE Vernova will begin trading on April 1, while the rest of the business, to be called GE Aerospace, will retain the GE ticker. In advance of that event, it would be a good idea to run through a few items that investors might find helpful.
The record date for the spinoff is March 19; holders of GE stock will receive one share of GE Vernova for every four shares they hold in GE. For example, if you hold 100 shares in GE, you will receive 25 in GE Vernova. Naturally, the 100 GE shares you will still hold (which will now be GE Aerospace) will drop in value on April 2 to reflect that the businesses becoming GE Verona are no longer part of the parent company.
However, that's not the whole story of the spinoff because investors can get approximations of how the market values each business before April 2. This is because there will be different trading markets for GE and GE Vernova from March 27 and continuing through April 1.
Source Fool.com
