QLT PhotoTherapeutics (QLTI) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : QLT PhotoTherapeutics (QLTI)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Scripts who wrote (655)	9/28/1999 3:52:00 PM
From: PDL	of 1321

-- OT -- The book value of the stock is static. When the stock splits (or 100% dividend) there will be twice as many shares and the book value per share will be 1/2 of the previous PER SHARE BOOK VALUE. Dilution comes from using stock to make a purchase (as in an acquisition) at a premium where the "earnings being bought" do not compensate for the shares used to make the purchase. Most acquisitions are dilutive to either earnings or book value (you have to account for good will in excess of the book value of the acquired firm). Theoretically, nothing really happens to stocks that split -- but psychologically, splits are often popular because they make the stock more affordable for retail buyers (to buy a minimum 100 share lot).

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next