Topics
    1. Stock Splits
    2. Stock Dividends
    3. Dividend Reinvestment Plans (DRIP)
  Stock Splits
   Stock Splits:  Firm divides its existing shares 
   into multiple shares
     Like a stock dividend except it is expressed as a 
     ratio
     For example, a 2 for 1 stock split is the same as a 
     100% stock dividend.
   Stock price is reduced when the stock splits.
   Common explanation for split is to return 
   price to a “more desirable trading range.”
  Reverse Stock Splits
   Shares of stock are merged to form a 
   smaller number of proportionally more 
   valuable shares. 
     There are many ways to do this
     One simple way is for the corporation to 
     cancel a uniform fraction of each 
     shareholder's shares
 When Should a Firm Split?
  Stock splits can be used to keep the 
  price in the optimal range.
  But most stocks are purchased by 
  institutional investors who have 
  millions to invest and are indifferent to 
  price levels.  Plus, stock splits and 
  stock dividends are expensive!
  Stock splits generally occur when 
  management is confident, so are 
  interpreted as positive signals.
  Stock Dividends
   Pay additional shares of stock instead of 
   cash
   Increases the number of outstanding 
   shares
   Small stock dividend
    Less than 20 to 25%
   Large stock dividend
    More than 20 to 25%