Sometimes, publicly held corporations increase the number of their outstanding shares by doing a stock split. For example, in a 2-for-1 stock split, you get an additional share for each share you own. This change affects the adjusted basis of your stock. In a 2-for-1 split, there will...
What is a stock split? A stock split is when a company issues more stock. This increases the number of shares in a company while reducing (diluting) the share price. The Impact of Authorized Stock on Corporate Transactions Authorized stock plays a pivotal role in various corporate transactions...
to receive cash or other property, which could render the stock dividend taxable (see Rev. Ruls. 83-68 and 90-98; however, in IRS Letter Ruling 9709044, the IRS concluded that the shareholders' ongoing right of redemption did not result in a stock split's being taxed to the shareholders...
and Peterson, P.P., "A Further Understanding of Stock Distributions: The Case of Reverse Splits", Journal of Financial Research, Fall 1992, 15, pp. 189 - 205.Peterson, D. R., and P. P. Peterson. 1992. A Further Understanding of Stock Distributions: The Case of Reverse Stock Splits...
Ride the hype:In the internet age, hype has taken on a life of its own. When news drops and it’s already been predicted, it will often be viewed as a disappointment. Trading on Stock Splits, Forex, and Earnings Announcements This strategy can be particularly effective in specific scenario...
When holding an in-the-money call option on a stock that's about to pay a dividend, be aware of dividend risks and how they can impact an investment.
there are now more avenues that you can go down than ever before. The world of finance is continuously expanding as the world continues to evolve, now there are many financial opportunities from stock investment to mortgage leads. There are qualifications that make a reverse mortgage leads viable...
This is a tricky one: the stock market changes every day, so it seems like it'd continuous, but there isn't an underlying predictable rate. We see a lot of jumpy changes, and sample them at yearly intervals to see how we're doing. The market is usually described with an annual avera...
Stock splits can improve trading liquidity and make the stock seem more affordable. In a stock split the number of outstanding shares increases and the price per share decreases proportionately, while the market capitalization and the value of the company do not change. ...
Corporate actions likestock splitsaffect market cap, price, and value. A stock split is when a company divides its existing shares into multiple new shares, usually to make the stock seem more affordable and to enhance liquidity. For example, in a 2-for-1 split, each share becomes two sha...