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Sunday, August 05, 2012 9:23:14 AM
In simplistic terms, anytime a shareholder RECEIVES any free shares through a split, it is always a dividend. Of course, this is IMHO, however, many companies call it that, and I cannot see why we cannot consider as just that.
In order to buy the free shares issued to me as a shareholder, I would need to use plenty of my own money. When the company provides me with free shares, it is a dividend.
"Dividends are given as cash, but they can also take the form of shares" as it says when I Googled "what is a dividend." Therefore, free shares are exactly that, a dividend.
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