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Stock splits impact on shareholders

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Find a firm that has announced a change in the equity portion of their capital structure such as a stock split and describe the impact on the shareholders.

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Solution Summary

Response discusses Rollins' stock split and how this impacts shareholders in everyday language suitable for novices to intermediate.

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Here is a recent stock split press announcement:

Rollins, Inc. Announces Three-for-Two Stock Split and Declares Dividend

ATLANTA, Oct. 26 /PRNewswire-FirstCall/ -- Rollins, Inc., a nationwide consumer services company (NYSE: ROL), announced today that the Board of Directors has approved a three-for-two stock split of the Company's common shares.

The split will be affected by issuing one additional share of common stock for every two shares of common stock held. The additional shares will be distributed on December 10, 2010, to holders of record at the close of business on November 10, 2010. Fractional share amounts resulting from the split will be paid to ...

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  • MSc, University of Virginia
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