Stock Dividends, Stock Splits and Reverse Splits

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Issue:

Business

 

Written by:

Roberto W

 

Date added:

November 20, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 662

 

Was viewed:

4986 times

 

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Essay content:

Stock dividend is also called “script dividend”. Some companies use the distribution of stocks dividend when their availability of liquid cash is in short supply or is needed to be reinvested in other projects. http://www.investopedia.com/terms/s/stockdividend.asp Stock split is a procedure that changes the number of outstanding share by increase or decreasing the number, without changing the company’s market value or the proportionate ownership interest of the existing shareholders...
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Is a method commonly used to lower the market price of a firm's stock by increasing the number of shares belonging to each shareholder. This procedures is approved by the board of directors of the company, involves issuance of additional shares to already existing stockholders of the company. Before a company announces a stock split, the company’s board of directors must decide what distribution rate they will use...
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