12-27-2013, 04:54 AM
'jft310' pid='35134' datel Wrote:Not much down side in a stock dividend. The main reason is to avoid adverse tax consequences the largest lenders of shares
would call back their loaned shares. Second when the dividend was issued the shorts must buy shares to deliver to the longs.
So their would be an increased float , fewer shares to borrow and forced buying of shares. I call that bullish
You can twist it the way you like it but a 50% stock dividend gives a 33% dilution. In my proposal this problem will not occur.
