Purchase Solution

Stock dividends, stock splits, and reverse splits

Not what you're looking for?

Ask Custom Question

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

? Write a paper based on your findings. Include the following in your paper:

o A description of the Web site examples you found, including the location, or URL, of the Web sites
o Definitions of stock dividends, stock splits, reverse splits, and effects on per-share calculations
o An analysis of 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

Purchase this Solution

Solution Summary

This solution is comprised of the detailed definition of stock dividends, stock splits, and reverse splits. It also consists of detailed explanation of how stock dividends, stock splits, and reverse splits affect the firm and the investor. A list of references is also provided.

Solution Preview

Stock dividend is a payment made by a firm to its owners in the form of stock, diluting the value of each share outstanding.
Stock split is an increase in a firm's shares outstanding without any change in owners' equity.
Reverse split is a stock split in which a firm's number of shares outstanding is reduced.

Citigroup, Inc and SunTrust Banks, Inc.

Citigroup, Inc. (C) started with a two-for-one stock split on March 13, 1987 (Yahoo Finance, 2009), meaning that each old share is split into two new shares. By April 6 of the same year, Citigroup, Inc. started to pay out dividend of $0.0333 per share. This amount lasted until October 3, 1988. By 1989, the company reduced its dividend payment to $0.00583. It kept coming back up to February 2, 1993 to $0.02 dividend. By March 1, 1993, the firm had a three-for-two stock split, meaning that for each two old share is split into three new shares. The firm had a four-for-three stock split again in August of the same year. After this split, the dividend fell and caught back up again in 1994. Thus, since the company went public in 1987, Citigroup, Inc. has split two-for-one once and three-for-two four times and four-for-three three times. The highest dividend Citigroup, Inc. has was $2.415 dividend in August 21, 2002. This ...

Purchase this Solution

Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.