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Technology Stocks : Ericsson overlook?
ERIC 9.625+1.1%3:59 PM EST

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To: Sawtooth who wrote (1265)1/29/1998 1:52:00 PM
From: JDN  Read Replies (1) of 5390
 
Tim A and all: ERICY is having a STOCK DIVIDEND NOT a split. That is why total capitalization goes up in proportion to the shares issued on the dividend. THIS IS NOT A TAXABLE EVENT. There will be twice as many shares outstanding so earnings and book value per share will be so effected. It is somewhat more conservative than a stock split in that total STOCK capitaliztion increases coming out of Retained Earnings. JDN PS: I too find it amazing the stock price has dropped on what I consider outstanding good news.
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