OK, I'll bite. I know what a cash dividend is, but what does a 20% stock dividend mean.Does it mean that FAME will issue you another 20% of shares based on the number of shares that you hold on 26 Mar. That's a huge bonus if the share price doesn't dip afterwards to offset it. Seems like it would.A friend said maybe they're taking 20% of some value (like sales) and paying it out per share. I said that I didn't see how that would be called a "stock" dividend.If FAME has a bunch of extra cash, how is issuing stock going to reward the stockholder. I thought that stock was issued to "raise" money, not spend it.I've always been under the impression that the market is always looking to the future, and the value of a stock reflects that future. It doesn't look like the news of a special 20% stock dividend did anything to the price of FAME. I'm confused.--snow
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst