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I posted this on the investment tips and expierences board, but looking at the last post that was in october 2005, and just to get a quicker respone, if anyone could help me out or refer me to another board it would be greatly appericated.

Hello all,

One of my very high risk companies (a holding company) announced that it was going to pay a stock dividend consisting of 1 share of company X for every 6 shares held of company y. They also said in a press release that the shares would be restricted for a year. What exactly does this mean and can anyone shed some more light on any special circumstances that this kind of dividend would entail (taxes etc...) ? And when a penny stock does this, is it a good sign (i am assuming it is) or could it somehow lead to a reverse split sometime in the future (not the first time it would happen for this company), BTW this is funny money for me I like to think i have diversified portfolio, that is not relying on this one stock. Thanks a lot.


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