InvestorsHub Logo
Followers 15
Posts 1430
Boards Moderated 0
Alias Born 02/20/2017

Re: Liuhisn post# 78397

Wednesday, 08/29/2018 1:20:08 AM

Wednesday, August 29, 2018 1:20:08 AM

Post# of 84886
they give you dividend to keep you happy and hope you stay and hold their stock despise all the fake PR news and hype. It's easy for them to do since all they are doing is give you dividend shares off of their spinoff stock. There's more to a Stock Dividend than just free money for investors.

A stock dividend is a dividend payment made in the form of additional shares rather than a cash payout. Companies may decide to distribute this type of dividend to shareholders of record if the company's availability of liquid cash is in short supply.As a result, a company's shares outstanding will increase, and the company's stock price will decrease.

Stock splits occur when a company perceives that its stock price may be too high. Stock splits are usually done to increase the liquidity of the stock (more shares outstanding) and to make it more affordable for investors to buy regular lots (a regular lot = 100 shares). Companies tend to want to keep their stock price within an optimal trading range.Stock splits increase the number of shares outstanding and reduce the par or stated value per share of the company's stock.

While stock prices will most likely rise after a split or dividend (remember price increases are caused by positive signals a company generates with respect to future earnings), if positive news does not follow, the company's stock price will generally fall back to its original level.



In this case, USMJ can keep their stock price low and affordable while ditching out fake PR News for the hype, but for us investors it will not help us in any way in the long term because the price will just fall right back down and float to .0004. .000+ is affordable for any new investor and with the fake PR News for hype it will always fool unwary and new investor.