I bought into TSM a couple days ago on my dad's
recommendation (this is his industry of expertise). He told me
that one of the benefits of TSM was that every year
around August there is a "non-dilutive stock dividend",
and that it is expected to be about 45% this year.
Can anyone corroborate this
What the hell is going on? all day, any site I go
to it's "We wanna place a cookie on our server by
the number #ooo555oooo555ooo etc. I am getting a
zillion of these today. Then I get at least six (6)
consecutiove windows asking me to allow a damn cookie
What the hell is going on??? is this the IRS? the FBI?
the Gore Campaign? The Bush campaign?>????
I'll bow out of this discussion. I made the
reckless assumption that we were concerned with securities
you, I or others who posted here could buy from any
U.S. broker. I'll grant you that there are other stock
exchanges around the world which have their own rules,
laws, accounting rules and customs. Some of theses
countries permit foreigners to buy local, ordinary shares,
others do not.
I for one do not feel the need to
go to such markets and do the research necessary to
overcome such differences. I will stick to the disclosure
and accounting standards required here. I will also
avoid direct currency risk, political risk and the
hassel of custody and changing currency exchange rates
among other things.
I appologize for rashly
assuming that posters were interested only in domestic
securities and more specifically, what they could expect in
respect to TSM. I do not have the expertise to conrtibute
to a discussion of investing in non U.S. securities,
nor do I have the time and desire to aquire that
Thank you for your patience.
A couple of points on what you've
been talking about. First, stock dividends are
dilutive to earnings. Generally speaking, that's what
people mean by "dilutive" activities. Second, public
companies in Taiwan issue stock bonuses to their employees.
The simple reason for this is that it's really cheap
to give huge bonuses. For proof, you can check out
some comments in the Far Eastern Economic Journal on
Asustek, you can also look at the dumping disputes between
several Taiwanese IC companies and Micron.
Looking at Asustek, they reportedly gave bonuses a few
years ago equal to 5 years' salary to some folks. How
could they afford that? Because their share price was
in the NT$500 range, but they only had to "pay"
NT$10 per share to give them to employees. Looking at
the finance industry, it was hard for companies, like
my former company, to entice people away from larger
firms becaues the larger firms were listed on the OTC
market. Being public give a company the ability to give
large bonuses without hitting their cash reserves, by
giving stock bonuses.
Anyway, just a couple of
The total value of your stock will be the same
before and after a split. The value of the split share
will fall in proportion to the split, but you will
have more shares.
If you have a pie, you can
cut it into as many pieces as you want, but it will
still be one pie.
A split sometimes brings the
share price to levels people prefer.
Hathaway (BRKA) has never split and was as high as
$86,000. per share, out of reach for most people.
can be treat as stock split. There is no argumet
here. You don't dilute in shares but stock is devalued
due to more and more supplies unless stocks can trade
higher volume as compared to pre-adjust. People own more
shares after split and has tendency to sell extra
shares. That results more supply than than demands. The
price will deppreciate accordingly.
...how you can have a "non-dilutive stock
dividend". The only way I can think of is to have the
company buy back shares equal to the additional issued
with the stock dividend. I doubt TSM is planning to do