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On May 24, 2013, the Board of Directors of Cerner Corporation approved a 2-for-1 stock split of the company’s common stock in the form of a 100 percent stock dividend. Each shareholder of record on June 17, 2013 will receive one additional share of common stock for each share held as of market close on that date. The distribution date for the new shares will be June 28, 2013.
Q. How does a 2-for-1 stock split actually work?
A. A 2-for-1 split means the shareholder will have twice as many shares as he or she had before the stock split, at half the market price. Here’s an example: Assume a shareholder owns 100 shares of CERN as of the record date at a market price of $100.00 per share, that shareholder’s total value is $10,000. After the split, the shareholder would have 200 shares of stock, with a market price of $50.00 per share. The shareholder’s total investment value in CERN remains the same at $10,000 until the stock price moves up or down.
Q. Why did the stock split now?
A. The decision to split the stock was made by Cerner Corporation’s Board of Directors, based on a desire to make the company’s stock more accessible to a broader range of investors.
Q. What is the effective date of the split?
A. There are several key dates:
Q. How many times have you split the stock?
A. This is the sixth time the company has split the stock since Cerner Corporation went public in December 1986. Below are the dates of the stock splits (dates reflect first day of trading at split-adjusted price).
Q. How will I receive my additional shares of Cerner stock?
If you hold shares in a brokerage account, the additional shares will automatically be deposited to your brokerage account. Registered shareholders will not receive a stock certificate. Instead, if you hold paper certificates now, the additional shares you receive as a result of the stock split are being distributed through the Direct Registration System (DRS). This means that you have full ownership of your shares without the responsibility of holding the actual certificates. A Direct Registration Transaction Advice (DRTA) will be mailed to you by Computershare, our transfer agent, and is your confirmation; it indicates the number of additional shares you own as a result of the split. Keep it with your existing stock certificates and other important documents as a record of your ownership.
Q. Where will my DRTA be mailed?
If you currently hold shares in your name as a registered shareholder, you will be notified at the address Computershare, our stock transfer agent, has on file. To verify your address you can contact Computershare (see below for contact information).
Q. What do I do with my existing Cerner stock certificate(s)?
Existing stock certificates are still valid. Do not destroy them. You may deposit your existing certificate(s) to a DRS account at Computershare or in a brokerage account, or you may continue to physically hold them and be responsible for their safekeeping.
Mailing/Transfer Agent Details for Registered Shareholders (Not applicable to shares held in a brokerage account)
How do I contact the Stock Transfer Agent?. If you have any questions about:
You can reach Computershare (Cerner Corporation’s stock transfer agent) by:Internet: www.computershare.com/investorPhone: (800) 736-3001 or (781) 575-2879Regular Mail: P.O. Box 43078Providence, RI 02940-3078Overnight Delivery: 250 Royall Street, Canton, MA 02021
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