--%>
Assignment Help - homework help

Describe the effect of stock dividends and stock splits

Describe the effect of stock (not cash) dividends and stock splits onto the market price of common stock? Why do corporations state stock splits and stock dividends?
Stock splits & stock dividends decrease the price per share of the common stock however must not raise the total market value of all common stock wonderful unless other positive things are perceived to occur. Many companies believe that a stock split or stock dividend makes their stock more affordable and therefore more attractive to broader range of potential investors.

   Related Questions in Finance Basics

  • Q : How is finance associated to accounting

    How is finance associated to the disciplines of accounting and economics? Financial management is basically a combination of accounting and economics. Firstly, financial managers employ accounting information such

    		•
  • Q : What is Revenue Anticipation Notes

    Revenue Anticipation Notes (RANs): The cash management tool usually used to remove cash flow imbalances in the General Fund in a given fiscal year. The RANs are not a budget deficit-financing tool.

    		•
  • Q : Illustrate a market of fictitious

    Illustrate a market wherein the equilibrium dollar price of one unit of fictitious currency Zee is $5 (the exchange rate is $5 = Z1). Then illustrates on your diagram a decline in the demand for Zee. a. Referring to this diagram, d

    		•
  • Q : Determine sizes of the MPC- the MPS and

    Normal 0 false false

  • Q : Explain Continuously Vacant Positions

    Continuously Vacant Positions: On July 1, the positions which were continuously vacant for six successive monthly pay periods throughout the prior fiscal year are abolished by the State Controller's Office. The six successive monthly

    		•
  • Q : Define Cash Basis of Accounting Cash

    Cash Basis of Accounting: The base of accounting in which expenditures and revenues are recorded whenever cash is received or distributed.

    		•
  • Q : Examples of high operating leverage

    Give two instances of types of companies likely to contain high operating leverage. Give examples. Long distance telephone companies & electricity generating companies are likely to contain operating leverage. These two kinds of companies

    		•
  • Q : Define Settlements Settlements : It

    Settlements: It refers to any proposed or final settlement of the legal claim (generally a suit) against the state. Approval of payments and settlements for settlements are subject to several controls.

    		•
  • Q : Define Programs Programs : The

    Programs: The activities of an association grouped on the basis of common objectives. The programs are included of elements that can be further classified into tasks and components.

    		•
  • Q : Four supply factors of economic growth

    Normal 0 false false