Web Site Search
The company provides various information that supplies a firm’s stock dividends, split stocks, and reverse split stock. The websites used for this research paper are financial dictionary and investopedia. The website provided information about the firm’s stocks, health, growth, potential profitability, and competition, which provides an understanding of the ratios used for the analysis. Companies and their finances must follow the same rules when they do not the person that prepared the paperwork and the company could get into serious trouble. The worst thing that could happen if the proper work was done properly the company would go under and many would lose their positions. Companies use stock dividends, stock splits and reverse splits to deal with business transactions.
“Companies have stock dividends, stock splits or reverse stock splits during different periods, dividends and splits can be used to influence the stock price of the company’s shares. Stock dividends are a distribution to shareholders declared out of profits at the discretion of the directors to corporations, which pays informs of share of stocks. A corporation declares a stock dividends, it adds undivided profits, which can’t pay dividends to the capital invested to corporation. The shareholder increases number of shares the same proportion of the value of the company as a shareholder originally held percentage, of the corporation as prior to the stock dividends (Encyclopedia of America, 2008).”
“Stock dividends are evidence that additional assets have been added to the capital. The value of the shares of a corporation always increases following a stock dividend. A stock dividend is part of corporation bookkeeping. A stock split increases the number of shares in a public company. Prices are adjusted such as market capitalization of the company remains the same. The method increases a firm’s amount by outstanding shares by dividing the shares and reducing the price....
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