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Thursday, September 01, 2011 11:00:23 AM
STOCK DIVIDEND CLARIFICATION ERROR:
The stock dividends are shares issued from the company treasury to existing shareholders of the record date up to the declared date of payment. Unlike a stock split which changes the stock price, a stock dividend DOES NOT directly change the stock price like a split. All shareholders holding stocks up to every share that your own, you will receive an additional share. Example: Investors owns 100,000 shares will own 200,000 shares after receiving the dividend shares. If you own unrestricted stocks yours shares will be unrestricted, if you own restricted stocks your shares will be restricted.
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