Stock split

The action taken by a company to increase the number of shares outstanding.

Dividend Stocks

Dividends paid in the form of additional shares rather than cash.

Effect on Stock Price

• The stock price will rise
• Increase the company’s stock price signals due to the prospect of profits and dividends
• The share price will fall if not announced an increase in profits and dividends

Stock Repurchases

Alternative to the payment of cash dividends, the company may purchase the shares back. Purchase of shares outstanding can be done through the secondary market Stock Exchange. Shares purchased are included in treasury stock account. Theoretically, the value of the company before and after the purchase of shares will be the same again.