David: <<double # shares and price halves. Elementry.>> Usually a simple thing, yes. But I am a bit unsure of this particualr situation. Per excerpt of news article, below, the capitalization of the stock doubles. With a straight stock split, the value of the shares halve, there are twice as many, and the capitalization is the same. A stock dividend is similar to being paid a dividend by the company; unless it's accounted for as a split. But, in the current case, the capitalization doubles. What am I missing here? ...Tim
...In addition, the Board of Directors proposes that at the end of May, after distribution of dividends, a bonus issue of 1-for-1 is made, whereby one new share is received for each old share held. The par value of the shares will remain at SEK 2.50. The bonus issue will increase the capital stock amount from SEK 2436m. to SEK 4872m. through transfer from restricted reserves.... |
