Prudential 2002 Annual Report Download - page 160
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Please find page 160 of the 2002 Prudential annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
General
Prudential Financial, which was organized on December 28, 1999, has outstanding two separate classes of
common stock. The Common Stock reflects the performance of the Financial Services Businesses and the Class B
Stock reflects the performance of the Closed Block Business.
The Common Stock was issued to eligible policyholders in Prudential Insurance’s demutualization and sold
to investors in Prudential Financial’s initial public offering. The Common Stock began trading on the New York
Stock Exchange under the symbol “PRU” on December 13, 2001. The following table presents the high and low
closing prices for the Common Stock on the New York Stock Exchange during the periods indicated and the
dividends declared per share during such periods:
High Low Dividends
2002:
First Quarter ............................................................................. $32.09 $30.05 $ —
Second Quarter ........................................................................... 35.75 31.05 —
Third Quarter ............................................................................ 32.99 27.35 —
Fourth Quarter ........................................................................... 32.10 25.50 0.40
2001:
Fourth Quarter ........................................................................... 33.19 29.30 —
The high and low closing prices presented for the fourth quarter of 2001 are for the period from December 13,
2001 through December 31, 2001. On February 28, 2003, there were 3,650,830 registered holders of record for
the Common Stock and 554.7 million shares outstanding. The closing price of the Common Stock on the New
York Stock Exchange on February 28, 2003 was $30.03.
The Class B Stock was issued to institutional investors (two subsidiaries of American International Group,
Inc. and Pacific Life Corp.) in a private placement pursuant to Section 4(2) of the Securities Act of 1933 on the
date of demutualization. There is no established public trading market for the Class B Stock. During the fourth
quarter of 2002, Prudential Financial paid an annual dividend of $9.625 per share of Class B Stock. On February
28, 2003, there were 3 holders of record for the Class B Stock and 2.0 million shares outstanding.
Prudential Financial’s Board of Directors currently intends to continue to declare and pay annual dividends
on the Common Stock and Class B Stock. Future dividend decisions will be based on, and affected by, a number
of factors including the financial performance of the Financial Services Businesses and Closed Block Business for
the Common Stock and Class B Stock, respectively; our overall financial condition, results of operations, cash
requirements and future prospects; regulatory restrictions on the payment of dividends by Prudential Financial’s
subsidiaries; and such other factors as the Board of Directors may deem relevant. Dividends payable by Prudential
Financial are limited to the amount that would be legally available for payment under New Jersey corporate law.
For additional information on dividends and related regulatory restrictions, see “Management’s Discussion and
Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” and Note 14 to the
Consolidated Financial Statements included in this Annual Report.
Prudential Financial 2002 Annual Report 159