Stock Split

[spotit3]

I have a few (a very few!) shares in National Oilwell Varco Inc. I had a letter yesterday stating the following:

National Oilwell Varco (NYSE:NOV) has approved a 2-for-1 stock split to be effected in the form of a stock dividend. Each stockholder of record on September 7, 2007 will be issued one additional share of the Company's common stock for each issued and outstanding share owned as of that date. The distribution will be made on September 28, 2007.

Can anyone explain to me if this is good news or bad news for me, will I be better or worse off?

[kujawski]

This is bad news, you will be worse off

[spotit3]

Can you tell me why?

[dzug]

In principle you should be neither better nor worse off. You will have twice as many shares, each worth half the price before the split, so same total value.

[spotit3]

Thanks a lot. That gives me some comfort.

[Hammer]

Agree with spotit3.

Instead of 1 share worth $1.50, you'll have 2 shares worth 75c each.

[Hammer]

Sorry dzug, I meant you!!

[rahim2206]

im not a stock broker but i think it reads your getting 1 free share with equal value for every share you have.
ie doubling your stock