Essay about Impact of a Stock Split on a Financial Statement

Green, Inc. had 200,000 shares of common stock outstanding before a stock split occurred and 800,000 shares outstanding after the stock split. The stock split

Growth: Due to high sales, size of company increased and so did its working staff increased. Apple went public on 12th December 1980 with a share price of $22 per share. Many investors wanted to be a part of it. Apple used the diversification strategy to come ahead of its

Apple has come a long way since 1997 when its shares traded at $3.19 and it was nearing bankruptcy. Apple's market cap today is greater than the combined market caps of IBM, Microsoft , Hewlett Packard (HP ) and Dell with about $40 billion in market cap to spare.

Split-up: An arrangement whereby a parent corporation transfers all of its assets to two or more corporations and then winds up its affairs. When a split-up occurs, the shareholders of the parent corporation surrender the total amount of their stock in exchange for stock in the transferee corporation.

The majority of share divisions are mostly two for one split. This implies the stockholders get two stocks and shares for the price of one share. In case the share cost $10, the stockholder will get 2 $5 shares instead.

The tipping point for Jayanthi’s splitting is investment of emotions. Although she plays other men with sexual purposes which violate moral standards, she puts herself away from splitting. She finds the balances of dating based on her conditions and she is no longer in pain. Similar case may also occur on the enterprise. Steve Jobs and Steven Wozniak are the supreme leaders of Apple. However, they have different idea of Apple’s development. Jobs focuses more on making business and Wozniak believes that technology is the way to progress. Apparently, Apple is troubled in splitting. Ending in a deadlock will hurt company so that Apple finds a way to get out of dilemma. According to Wu’s describe, “the history of a firm must be understood in this light. For while founders do set the culture of a firm, they cannot dictate it in perpetuity; as Wozniak withdrew from the operation, Apple became more concerned with the aesthetics of radicalism than with its substance” (Wu 538). Wozniak’s concession reactivates Apple and lets it develop in another angle. In this case, compromise is the tipping point for Apple’s splitting. After Wozniak withdraws from operation, Apple

They have had 14 stock splits in their history including 3 for 1 five times

The accounting system we use today started in Venice in renaissance period over 520 years ago. The trade business increased hugely during this time and all the financial recordings had to be written down to help people see how their business is doing. During that time in 1494 the first book about was published in accounting by Luca Paciolli and was called “The Collected Knowledge of Arithmetic, Geometry, Proportion and Proportionality”. He was called “The father of Accounting” and most of his described principles have been used up until this day.

What are some of the reasons mentioned for the split and what has been the

The purpose of this case is to have students examine dividend policy--cash dividends, stock splits, and stock dividends--from the viewpoint of its effect on corporate share prices.

The negative change in stock prices comes up as a result of decrease in organization’s earnings. Investors lose confidence in a product once its share prices begin to fall as a result of competitors (Michelle, 2015). However, in view of the Apple stock analysis, the income is expected to grow at any time and the future company’s stock might be higher. The closing price for Apple in the stock market was $123.38. The purchase price was $130.28 with its percentage change in stock price as -5.30%.

7. Hypothesis Testing: The formulated hypothesis in the study that whether abnormal returns are generated by stock split was tested by conducting paired sample t test using SPSS for the sample of companies for period ranging from -60 to +60 days. The two variables compared were the normal returns and the expected returns ( based on BSE returns)

Financial Statements basically show the historical performance or record of the company at some previous point of time. By the time when financial statements are made public, changes are many economical areas such as market conditions, currency exchange rate and inflations can change the values of assets and liabilities. In this case there often exist discrepancies between book value of assets and their market values.

The research contributed towards the factors that lead to abnormal returns on announcement of bonus issue and stock splits. The research helps us to analyze the market reaction on announcement of stock splits.

The list of blue chip stock changes periodically, but there are always those that manage to stay on top for years.