|Exercise 18.1||Stock Splits and Stock Dividends|
"What Are Corporate Actions?" explains the concepts of stock splits, reverse stock splits, cash dividends, and stock dividends.
Q. How would you describe a "stock split" and a "reverse stock split?" According to the article, what reasons do companies give for having "stock splits" and "reverse stock splits?"
|Exercise 18.2||DRIPs, DPPs, DSPs, and DSPPs: What Are They?|
Visit DRIP Advisor, DRIP Central, and DRIP Investor to learn about Dividend Reinvestment Plans (DRIPs) and Direct Stock Plans (DSPs) -- also referred to as Direct Stock Purchase Plans (DSPPs) or Direct Purchase Plans (DPPs). Pay special attention to how these sites define DRIPs and DSPs/DSPPs/DPPs so that you will be able to distinguish between these plans.
Q. Which web site do you think does the best job of defining: 1) a DRIP; and 2) a DSP/DSPP/DPP? Copy and print those definitions. What is the difference between a DRIP and a DSP (or DSPP/DPP)?
|Exercise 18.3||One- to Two-page Memorandum Providing a Summary of the Contents of a Web Site|
This exercise is designed to help you get better acquainted with a DRIP, DSP, DSPP, or DPP web site.Visit DRIP Advisor, DRIP Central, and DRIP Investor to learn about Dividend Reinvestment Plans (DRIPs), Direct Stock Plans (DSPs), Direct Stock Purchase Plans (DSPPs), and Direct Purchase Plans (DPPs). Choose the one site that you found to be the most interesting or informative.
Memo. Adopt a business writing style (including correct spelling and proper use of grammar) in a one- to two-page, typed memorandum submitted to your instructor. The subject of your memo should be an executive summary of the contents of your chosen web site. In addition, make a short persuasive recommendation (in the body of the memo) to your instructor to have him or her assign this web site as a required viewing for the class.
(TIP: For help in mastering the memo format, visit the "Memos" web site at Rensselaer Polytechnic Institute's "Writing Center.")
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