Thread: Investing 102
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Old 04-25-2012, 05:31 PM
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CRCRFT78 CRCRFT78 is offline
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Is there any mention of an increase in the level of dividends accompanying the split or would that be announced at the time of the split? I'm trying to understand the possible benefits to a split other than more shares. The price will adjust accordingly so you really aren't gaining on that end. A stock dividend will also add more shares but the investment amount stays relatively the same. The one benefit to a stock dividend is that it won't be taxed until you sell unlike cash dividends.

Sorry I'm thinking out loud. Just trying to understand the benefit of a split. Unless the benefit comes in the long term with share prices rising beyond what they were before the split. Then I can see some benefit in which you didn't buy shares but received them via a stock split. I could be completely wrong about everything. Sorry for thinking out loud.
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