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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (15574)	12/3/2003 3:42:42 PM
From: Gus	Respond to of 17183

I don't remember the last time a major Japanese company split its stock so I doubt it. There may be obscure tax implications. Stock splits are initiated to reduce the share price, making it easier for general investors to purchase. In Japan, the following three have been categorized as 'Stock Split' after the revision to Commercial Code in 1991. a) Bonus Issue (Gratis Issue) Bonus issue is the most popular form of stock split in Japan. Shareholders are awarded additional stocks free of payment from the issuer according to the allocation ratio in proportion to their holdings. This is conducted by appropriating capital amount in excess of par value or by capitalizing legal reserves. It becomes untaxable in case it is made by capitalizing earnings reserves and becomes taxable in case capital reserves are used. b) Split-up (Sub-division) Split-up is the increase in the number of outstanding shares without any change in the shareholder's equity or the aggregate market value at the time of split, while the share price declines proportionally with the split ratio. c) Stock dividend Stock dividend is currently very rare in Japan. This is distributed by capitalizing earned surplus and is therefore regarded as a profit distribution subject to a 20% withholding tax for non-Japanese residents unless they can enjoy a tax reduction under the tax treaty. smbc.co.jp