Cash dividends

Question 1

Cash dividends:

Answer 1

• Ordinary: 4times per year
• Liquidating dividend: when a company goes to bankruptcy
• Extraordinary: specific events
  ASV = PPS * (Prev n shares/ actual n shares)

Question 2

Stock swap:

Answer 2

• Is a technical process aimed at making unlisted shares tradable on a stock exchange.
• It does not alter the shareholder´s investment value but enhances their abilty to sell the shares easily.
• Occurs when a share exchange involves an old series of shares (not listed on the stock exchange) being exchanges for a new series of shares (listed and tradable on the stock exchange).

Question 3

Stock subscription

Answer 3

A stock subscription is a formal agreement between a company and an investor in which the investor agrees to purchase certain number of shares of the company´s stock, typically at preferential price.
ASV Stock Sub = ((prev price per share*prev n shares)+(preferential price * new shares)) / total of shares

Question 4

Ex dividend

Answer 4

An ex-dividend stock means that the right to receive the
next dividend payment has expired for anyone who buys the
stock on or after the ex-dividend date

Question 5

Stock dividend

Answer 5

A stock dividend is a payment to shareholders that consists of
additional shares of a company’s stock rather than cash