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Tuesday, December 13, 2011 12:43:23 PM
you do realize that all that "extra" stock was worth exactly the same as the stock you had the day before the split?..or excuse me, the "dividend" lol...
there is a reason that this example is given "They are usually issued in proportion to shares owned(for example, for every 100 shares of stock owned, a 5% stock dividend will yield 5 extra shares). "
in the example the person is getting 5 shares for every 100 he owns...not 9 shares for every one he owns as in what kblb did....the difference is a stock dividend is issued when the company profits...those profits are shared as a stock dividend..what kblb did is a f/s...there were no profits and absolutely no reason for anything that could be called a stock dividend...calling what kblb did a stock divident was misleading and complete bs...
"oh now I remember It must be the definition of a dividend that had me confused "
yes..do read the definition and pay attention to the examples..they give those examples for a reason...
"A dividend payment made in the form of additional shares, rather than a cash payout"
again..a dividend PAYMENT..rather than a CASH PAYMENT...do you think kblb considered giving you CASH as PAYMENT?...because they were doing so well financially?..because they were so profitable?..this is when dividends of any kind are given out...and they are handed out as FRACTIONS of the shares held...not 9 times what one owns..lol
"These distributions are generally acknowledged in the form of FRACTIONS PAID PER EXISTING SHARE. An example would be a company issuing a stock dividend of 0.05 shares for each single share held"....
again, just paying attention to the definitions tells you everything you neeed to know...
"then Kim had the nerve to hold press conference and run my shares up over 2500%"
yes they went up on more misleading bs...but thats another story...if the o/s had been 9 times less, then the stock would likely have risen proportially higher...thats how the stock market works...if you think you made more money because of the forward stock split, you are mistaken and completely misinformed..or perhaps misled..
"But what you said was in no way misleading!! :)"
finally..an accurate statement
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