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How, can (a) and (c) both be correct, if (a) is “no effect”, and (c) is, in your opinion, “yes it doubles the value, but may have different effects if bla bla..
by shaki-dora 8y ago
How, can (a) and (c) both be correct, if (a) is “no effect”, and (c) is, in your opinion, “yes it doubles the value, but may have different effects if bla bla...”
- gamblor956 8y agoIt doesn't double the value of his shares. It merely doubles the size of the dividend he receives, assuming that the company doesn't change the size of the dividend to account for having fewer shareholders (which was an explicit part of the hypothetical of the comment I replied to). In the real world, the company would simply reduce the size of the dividend so his take-home is the same.