A Small Stock Dividend of 20,000 Shares Was Declared and Distributed

question 41

Essay

A small stock dividend of 20,000 shares was declared and distributed during 2010. What was the market price per share on the date of declaration?

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Definitions:

IPOs

Initial Public Offerings, a process where a private company offers shares to the public in a new stock issuance to raise capital.

First Day Returns

The percentage change in the price of a stock from its initial public offering price to its closing price on the first day of trading on the public market.

Unseasoned Rights Offering

A capital-raising activity in which companies offer new shares to existing shareholders without a prior track record of such market actions.

Public Offering

The process of selling new issues of securities to the public, typically through the issuance of stocks or bonds.