Public companies exist to serve their shareholders' needs. When public companies make money, shareholders are happy and satisfied, and the profits are distributed accordingly. Also, it is the shareholders who sacrifice their earnings per share when a company seeks expansion. All in all, all actions by a corporation directly affect shareholders. One known corporate step that directly affects shareholders is issuing additional shares. Companies issue additional shares to the market for different reasons, but one of the main reasons is to raise money from investors.
Inhaltsverzeichnis (Table of Contents)
- Shareholder Returns
- Issuance of Additional Shares of Common Stock
- Announcement of A New Share Repurchase Program
- Increase of The Quarterly Dividend Per Share
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The primary objective of this text is to examine the impact of various corporate actions on shareholder returns. It delves into how these actions affect the value of shares, earnings per share, and overall investor sentiment.
- Issuance of additional shares of common stock and its impact on share dilution and earnings per share
- Share repurchase programs and their effect on shareholder value and earnings per share
- Dividend announcements and their influence on stock prices and investor behavior
- The relationship between dividend payouts and company profitability
- The importance of understanding the impact of corporate actions on shareholder returns.
Zusammenfassung der Kapitel (Chapter Summaries)
This section focuses on the main themes and arguments presented in each chapter, excluding the conclusion or any chapters containing major revelations or spoilers.
- Issuance of Additional Shares of Common Stock: This section examines the consequences of issuing additional shares on the value of existing shares and earnings per share (EPS). It explains how issuing new shares can lead to share dilution, reducing the value of existing shares for investors, and impacting EPS by increasing the denominator in the calculation.
- Announcement of A New Share Repurchase Program: The chapter explores the effects of share repurchase programs on shareholder value and EPS. It highlights the reverse impact compared to issuing new shares, explaining how buybacks can increase shareholder value and potentially lead to a higher stock price.
- Increase of The Quarterly Dividend Per Share: This chapter examines the impact of dividend announcements on stock prices and investor behavior. It discusses how dividends can influence investor decisions to buy or sell shares, and how an increase in dividend per share can signal company profitability and positively affect stock value.
Schlüsselwörter (Keywords)
This text focuses on the key concepts of shareholder returns, corporate actions, stock value, earnings per share, share dilution, share repurchase programs, dividend announcements, investor behavior, and company profitability.
- Quote paper
- Edison Otieno (Author), Shareholder Returns, Munich, GRIN Verlag, https://www.grin.com/document/1273312
