Lucent Technologies

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Dividends and stock splits

By Migdalia Alicea

March 24, 2013

March 24, 2013

INTRODUCTION

Ever have a question about stocks and dividends and you don’t know where to turn? The internet has been a very popular source of information for many people. You can look up many topics from A to Z and that includes stocks and dividends from websites such as http:/finance.yahoo.com. This website provides information on currency exchange, stories on major companies and the effect the market has on them. Important information on how the stock market itself is doing, markets such as NASDAQ, DOW.

Another website is http;//www.cnbc.com/ this website provides information such as price per share in the stock market and stories that cover companies that are effected by the market. One story in particular is the story of stocks ending on” Cyprus hopes; NKE Soars but the DOW snapped their four week winning streak”. CNBC finance on the internet also provides information on investing and earnings.

In this paper we will proceed to inform the reader on the differences between stock dividends, stock splits, and reverse splits also the effect they have on EPS (earnings per share). We will also proceed on how they affect the firm and the investor as well. There will also be a conclusion of all the informed retrieved from the websites (yahoo, CNBC). It is important to understand Earnings per Share which is amount of earnings per each outstanding share of a company.

CNBC published Friday March 22, 2013

Dividends, Stock Splits, Reverse Splits

Stock Dividend is dividend that is paid to stockholder in shares in shares of stock that is often used in the place of or in addition to a dividend that is paid in cash. An example that could affect the EPS (earnings per share) is if a share was for instance 1.29 at the end of 2010 than at the end of 2011 the firm was profiting therefore more investors the share...