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Sent to General Experts June 29 2006 at 4:15 PM
   

Compare a regular cash dividend with a periodic share repurchase. Which has greater appeal to you? Explain.
Explain a stock dividend and further explain if you would prefer it to a cash dividend.
What are stock splits and how desirable are they?

 

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June 30 2006 at 1:52 AM (9 hours and 36 minutes and 11 seconds later)
         
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Hello

The benefit of PSR's are of greater appeal to me because; a) it brings financial gain without any tax exposure and b) it should enhance the long term value of the company shares.
A stock dividend is payment of the company dividend in the form of additional stock shares. It is prefereable again because it avoids the tax exposure of a cash dividend and again because it benefits the company long term in that the money stays within the company (for re-investment in r&d for example). Stock Splits a rea process whereby current shareholders receive additional shares, based upn their current holidign. For example a 2 for 1 split would give someone with a holding of 100 shares an additional 100 shares, totaling 200. Stock Splits are similar to Stock Dividends; they increas the number of that company's shares in existence without lowering the company's market capitalisation. They do, however, inevitably lead to a lowering of the share price.   
Regards,
Dunacn

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