SWS - An undiscovered gem 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.

Non-Tech : SWS - An undiscovered gem

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: jbe who wrote (234)	5/20/1999 1:24:00 PM
From: Kevin McKenzie	of 504

A dividend that is distributed in the form of stock is the same as a stock split. Typically, the day the stock splits, the price per share drops proportionally to reflect the dilution of ownership (ie, your spreading the ownership out among more shares of stock) When a company declares a 2 to 1 stock split, they usually phrase it as "a dividend in the form of 1 extra share per share owned" Examples: FDX: biz.yahoo.com NITE: biz.yahoo.com There are many others that use the term dividend in the form of stock. So, SWS has approved an 11 for 10 stock split in the form of a 10% dividend, to "be distributed on Aug. 2, 1999 to shareholders of record as of July 15, 1999" biz.yahoo.com A company cannot increase its value simply by printing more shares, there has to be a corresponding adjustment in price. That doesn't mean that the shares can't immediately rise back to their pre-split price (thus increasing the companies total capitalization)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next