Integrated Freight Corp (fka IFCR)

[eddy2]

Today's topic will be scrip dividends, yes that is spelled the same as a scrip for a movie as odd as that is. So what are scrip dividends. In short they are dividends issued in the way of stock. They can be issued by warrents with a sweetner attached for being a loyal customer or personally issued by mail to the holder and lastly by forward splitting the shares.

You would of noticed that warrents often issued pre a forward stock split.

In the case of a stock reversal nothing really changes when scrip shares are issued except now they are issued by the issueing of outstanding shares into a trust account for the common share holder and other equity for the restricted share holders.


The other topic of importance is the difference between revenue and retained earnings. Had the retained earnings stayed constant the dividend would be constant. Because there is market influence into the dividend offering the value will fluctuate accordingly. In a rising market your payout would be greater and of course in a down turned market not so.

To prevent this from happening often there will be a combination of a warrent issued along with a forward split and a reverse split that increases the outstanding shares held in trust until distributed to share holders.

As with any bond of good faith payment of earned revenue and retained earnings must be forwarded but not in a manner that is dilutive too established shareholders to new shareholders.


Don't forget all shares bought and sold must go through the handler for the company. The handler is not going to sell shares cheaper then what he purchased them for. This would be a dilutive action by the company unless the company can sell them for double what they purchased them for.

Example of that is: if the company issued shares for a dollar bought them back for fifty cents and reissued them back for a dollar they made double there money. Now if they can purchase them below par for $ .00001 and resell them for $.001 through a stock reversal and debt " the increasing of the outstanding shares " then they have doubled the retained earnings for the stock holders of the company without increasing revenue.

Well folks have a positive day trading. I see great fortune raining down on us all from above.