Silicon Investor (SI) -- The First Internet Community

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.

Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?

To: Scotsman who wrote (3341)	4/8/1999 3:03:00 PM
From: Andy H	Read Replies (1) \| Respond to of 6846

An explanation of some of the issues raised re stock splits, treasury shares and authorized shares. The reason you go to the shareholders is to amend the Articles/Certificate of Incorporation to increase the AUTHORIZED number of shares. It does not relate to dilution of existing shareholders. That concept is called a "preemptive right" and is occasionally provided for in private companies, but never in public companies. Once shares are authorized, the company may issue them without common shareholder approval. Treasury shares are shares that were issued and reacquired by the company, but not retired. A stock split is usually effected in the form of a 100% stock dividend, so that the par value of the common stock remains the same. If the par value of the stock were to be changed, an amendment to the Articles of Incorporation would be necessary, requiring shareholder approval.