Purchase Solution

Stock Split , Reverse Stock Split

Not what you're looking for?

Ask Custom Question

Have you ever experienced a stock split? Did it change your ownership position with the company? Did it enhance the stock price? Why would a company do a stock split? A reverse stock split?

Purchase this Solution

Solution Summary

The solution discusses with the help of examples Stock Split and Reverse Stock Split.

Solution Preview

Have you ever experienced a stock split? Did it change your ownership position with the company? Did it enhance the stock price? Why would a company do a stock split? A reverse stock split?

(Source: http://www.knowthetruth101.com/2360-stock-split.html)
Stock splits occur all the time. Some recent examples: WEST PHARMACEUTICAL SERVICES, INC., CATHAY GENERAL BANCORP, STIFEL FINANCIAL CORP. (You can give your own example)
A stock split occurs when a publicly held company distributes more stock to holders of an existing stock. For example, with a 2-for-1 split, a company will issue one additional share for every share that a holder has. Stock splits are similar to stock dividends in that the shareholder owns more shares afterwards. However, it is different in magnitude and accounting treatment. With a stock split all the old shares are extinguished and new shares are issued with a new par value. Typically, in a stock split the ...

Purchase this Solution


Free BrainMass Quizzes
Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.