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transfer additional shares of stock in the company to existing shareholders

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16y ago

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Related Questions

What is the effect of issuance of stock dividend to paid in capital?

Stock dividend changes the number of shares outstanding but it does not have any affect on amount of capital


The effect of a stock dividend is to?

To increase the book value per shear of common stock


What is the effect of a stock dividend on a corporation's stockholders'equity accounts?

The stock Dividend is more or less profit sharing. When a dividend paying company is profitable they pass along those profits to the shareholders in the form of a dividend check.


How do you calculate ex-stock dividend price?

Ex-stock dividend is equal to the price of the dividend of the stock, the only difference is the face that the dividend is actually paid to the seller rather then the buyer of the stock.


What entity would physically process a stock dividend payment- The Issuing Company or the Stock Exchange or the Transfer Agent or the Clearing House?

Clearing House


What is the difference between a stock dividend and a cash dividend?

A stock dividend is when a company distributes additional shares of its stock to shareholders, while a cash dividend is when a company pays out cash to shareholders as a form of profit sharing.


What effect will the declaration and distribution of a stock dividend have on the net income and cash flows?

19. What effect will the declaration and distribution of a stock dividend have on net income and cash flows? (Points : 2)No effect on net income or cash flowsNo effect on net income, decrease cash flowsDecrease net income, decrease cash flowsIncrease net income, no effect on cash flows


Why does a stock drop on the ex-dividend date?

A stock drops on the ex-dividend date because on that day, the stock no longer includes the right to receive the upcoming dividend payment. This change in the stock's value reflects the value of the dividend being paid out to shareholders.


What is the process for receiving a loan stock dividend?

To receive a loan stock dividend, you must own shares of the company that issues the dividend. The company will announce the dividend payment date, and you will receive the dividend in the form of additional shares of stock or cash, depending on the company's policy.


What is dividend theories and policies?

Dividend policies are concerned with the financial policies that have to do with how, when, and how much regarding paying cash dividend. Dividend policy theories explain the reasoning and arguments that relate to paying dividends by firms Dividend theories include the dividend irrelevance theory that indicates there is no effect on the capital structure of a company or its stock price from dividends.


If an investor buys stock on the ex-dividend date will that individual receive the dividend?

No, the definition of ex-dividend date is trading without the dividend. Any stock purchased "ex-dividend" date is not entitled to the dividend. AND equally as importantly OFFSETTING this - is the insatnt that happens the stock price is reduced by the amiunt of the dividend being paid. NO you cannot "steal" a dividend - that is buy it the day before the divideden gets paid (or ownership date actually) - and sell the day after - all you do is get the dividend and the equally lower stock value.


If you sell a stock on the ex dividend date do you still get the dividend?

yes!