lecture 2 part 3

Question 1

how can a stock be repurchased

Answer 1

open market repurchases, tender offer, targeted stock repurchases

Question 2

what is open market repurchases

Answer 2

company purchases stock on the open market

Question 3

what is tender offer

Answer 3

company announces it is repurchasing stocks in an open letter

Question 4

what is a targeted stock repurchase

Answer 4

the company negotiates a price with a certain shareholder

Question 5

what is a cash dividened

Answer 5

shareholders receive cash and amount per share is set

Question 6

what is a stock dividend

Answer 6

shareholders receive bonus shares
usually indicated as a %
primarily an accounting entry

Question 7

what is a stock splits

Answer 7

existing shareholders have shares divided

Question 8

what happens to the value of each share in a stock split

Answer 8

also divided

Question 9

what happens to the value of the company during a stock split

Answer 9

does not change the valuation of the organization