Running head: ASSIGNMENT: WEB SITES SEARCH
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Assignment: Web Sites Search
Nikki Vergets
Acc/230
6/26/2011
Connie Poynter
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ASSIGNMENT: WEB SITES SEARCH
2
Assignment: Web Sites Search
Financial tools and strategies are used by many companies to find success; this gives the
company a way that they can use business transactions to influence the market prices for their
shares. These financial tools include stock dividends, reverse splits, and splits. Dividends and
splits can be located in a company record for a lot of different accounting periods.
Stock dividends are paid in shares of stocks used in place of cash or in addition to a
dividend paid in cash. When a company issues a stock dividend, rather than cash, there usually
are not tax consequences until the shares are sold. Stock dividends and cash dividends are not the
same. When a cash dividend is issued the stockholder then receives cash and, dividends of stock
do not symbolize something of any real type of value to the stockholder unlike the cash
dividends. When there is an issuance of stock dividends a stockholder receives more shares, yet
the amount of ownership within the company always stays the same.
There is a decrease in retained earnings when a company issues out stock dividends.
Another thing is that the company’s net assets do not change. A company generally issues stock
dividends to make a difference on the market value of their stock. So basically, it comes down to
the more shares the company issues the more the market value of that stock for the company is
going to drop.
Stock splits are another influential financial tool that a company can use to the make a
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This note was uploaded on 07/12/2011 for the course ACC 230 acc 230 taught by Professor Connie during the Spring '11 term at University of Phoenix.
- Spring '11
- connie
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