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    stock exchanges, stock split, dividend policy

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    What are three U.S. stock exchanges where equities are publicly traded? Why may a stock split not be of great value to existing shareholders? How can a dividend policy be amended to address shareholders' expectations of increasing returns.


    What are some of the sources companies can turn to for venture capital funding? What analytical questions will be at the top of VC's due diligence list prior to offering capital to early-stage firms? How will VC's realize their return on investment over the life of an investment in a firm?

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    Solution Preview

    Three US stock exchanges are NYSE, NASDAQ and AMEX.

    A stock split may not be of great value to existing shareholders as even though it increases the number of shares held by a shareholder, the overall value of shares remain the same as price of the stock being traded on the exchange is reduced in proportion to the split ratio. For example, if a stock is split into 2 and is being traded at $100 on the exchange, the post split price will become $50. Thus, the total value of the 2 shares held by the shareholder will still remain $100.

    A company ...

    Solution Summary

    The solution discusses stock exchanges, stock split and dividend policy as it pertains to the United States.