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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
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I don't know what a stock dividend is either, but I aim to hold on to find out... I figure it's like you said,they are going to issue like a stock split,or something. (1 for 5) Also this company pays a dividend which most nasdaq stocks do not..
On NASDAQ stocks the stockholders determine the stocks worth by supply and demand based on co. wealth and p/e,and many other factors. The stock itself becomes a seperate entity, regardless of what the company does or does not do.. 680 p/e's and the like.(SCMM)

I thought this stock would go up, on news of a dividend, but no one seems to have noticed, in fact it's been picked up by very few. BLUE chips are getting all the new money, which in my opinion is FOOLISH.. (overhyped and over valued.. buy one share of (xyz) for $100 stock goes up a dollar you make enough for coffee. Buy 100 shares of (abc)for same $100, stock goes up a dollar you make $100, I know it sounds like the old Penny Stock pitch, but I can't see buying into a big co.that's already higher than a cat's back..

Good luck
Vaughn
P.S. I'll try to find out if there is an e-mail address for this co. I think there is a website.
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