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    Dividends, Splits, & Reverse Splits

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    Research Web sites that contain examples of stock dividends, stock splits, and reverse splits. Yahoo Finance at http://finance.yahoo.com is a good starting point for locating these Web sites.

    Write a response on your findings. Include the Following:

    o A description of the Web site examples you found, including the location (URLs) of the Web sites.

    o Definitions of stock dividends, stock splits, reverse splits, and effects on per share calculations.

    o A discussion about the reasons for stock dividends, stock splits, and reverse splits.

    o An explanation of how stock dividends, stock splits, and reverse splits affect the firm and the investor.

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    Solution Preview




    Yahoo Finance supplied several examples of stock splits, including reverse splits, and stock price effects of dividends.

    Stock dividends are payments made from a firm to shareholders during times of financial prosperity. When the firm has realized generous profits during a fiscal term, it may elect to make payments to shareholders representing return on investment. Dividends typically have the theoretical effect of increasing a share's value as an investor will relate an investment in a firm paying a regular dividend with receiving a return on investment payment.

    Stock splits occur typically during times of increasing share prices ...

    Solution Summary

    The solution defines, justifies, and explains the effects of dividends, stock splits, and reverse stock splits.