The reason why stock dividend or stock split is not highly valued by investors. Introduction: Stock Dividend: When a company pays dividend to its shareholders in the form of additional shares, it is termed as stock dividend. This form is generally paid out when the company has less cash reserves. Stock split: A corporate procedure through which the management of a company divides its current shares to increase the shares outstanding is termed as stock split. It helps in boosting the liquidity of shares.

Question

Want to see the full answer?

Answer 1

Question

Chapter 18, Problem 9DQ

Summary Introduction

To explain: The reason why stock dividend or stock split is not highly valued by investors.

Introduction:

Stock Dividend:

When a company pays dividend to its shareholders in the form of additional shares, it is termed as stock dividend. This form is generally paid out when the company has less cash reserves.

Stock split:

A corporate procedure through which the management of a company divides its current shares to increase the shares outstanding is termed as stock split. It helps in boosting the liquidity of shares.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Why might a stock dividend or a stock split be of limited value to an investor? Please explain your answer

D6 Discuss buying back stock and splitting shares as ways in which the rate of return of stocks is affected. What is the scientific evidence on these issues?

What is a stock split? As an investor, would youlike to see shares you own be split?

Answer 2

Question

Chapter 18, Problem 9DQ

Summary Introduction

To explain: The reason why stock dividend or stock split is not highly valued by investors.

Introduction:

Stock Dividend:

When a company pays dividend to its shareholders in the form of additional shares, it is termed as stock dividend. This form is generally paid out when the company has less cash reserves.

Stock split:

A corporate procedure through which the management of a company divides its current shares to increase the shares outstanding is termed as stock split. It helps in boosting the liquidity of shares.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 18, Problem 9DQ

Summary Introduction

To explain: The reason why stock dividend or stock split is not highly valued by investors.

Introduction:

Stock Dividend:

When a company pays dividend to its shareholders in the form of additional shares, it is termed as stock dividend. This form is generally paid out when the company has less cash reserves.

Stock split:

A corporate procedure through which the management of a company divides its current shares to increase the shares outstanding is termed as stock split. It helps in boosting the liquidity of shares.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 18, Problem 9DQ

Summary Introduction

To explain: The reason why stock dividend or stock split is not highly valued by investors.

Introduction:

Stock Dividend:

When a company pays dividend to its shareholders in the form of additional shares, it is termed as stock dividend. This form is generally paid out when the company has less cash reserves.

Stock split:

A corporate procedure through which the management of a company divides its current shares to increase the shares outstanding is termed as stock split. It helps in boosting the liquidity of shares.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 18, Problem 9DQ

Summary Introduction

To explain: The reason why stock dividend or stock split is not highly valued by investors.

Introduction:

Stock Dividend:

When a company pays dividend to its shareholders in the form of additional shares, it is termed as stock dividend. This form is generally paid out when the company has less cash reserves.

Stock split:

A corporate procedure through which the management of a company divides its current shares to increase the shares outstanding is termed as stock split. It helps in boosting the liquidity of shares.

Answer 6

Chapter 18, Problem 9DQ

Summary Introduction

To explain: The reason why stock dividend or stock split is not highly valued by investors.

Introduction:

Stock Dividend:

When a company pays dividend to its shareholders in the form of additional shares, it is termed as stock dividend. This form is generally paid out when the company has less cash reserves.

Stock split:

A corporate procedure through which the management of a company divides its current shares to increase the shares outstanding is termed as stock split. It helps in boosting the liquidity of shares.

Answer 7

Chapter 18, Problem 9DQ

Summary Introduction

To explain: The reason why stock dividend or stock split is not highly valued by investors.

Introduction:

Stock Dividend:

When a company pays dividend to its shareholders in the form of additional shares, it is termed as stock dividend. This form is generally paid out when the company has less cash reserves.

Stock split:

A corporate procedure through which the management of a company divides its current shares to increase the shares outstanding is termed as stock split. It helps in boosting the liquidity of shares.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 18 - Prob. 1DQ Ch. 18 - Prob. 2DQ Ch. 18 - Prob. 3DQ Ch. 18 - Prob. 4DQ Ch. 18 - Prob. 5DQ Ch. 18 - Prob. 6DQ Ch. 18 - Prob. 7DQ Ch. 18 - Prob. 8DQ Ch. 18 - Prob. 9DQ Ch. 18 - Prob. 10DQ

Solution Summary: The author explains why stock dividend or stock split is not highly valued by investors.

Videos

Want to see the full answer?

Chapter 18 Solutions