RE: Difficult To Understand5 Aug 2017 10:53
i also don't understand this, https://en.wikipedia.org/wiki/Scrip_issue
Quote: A scrip issue, also known as capitalisation issue or bonus issue, is a form of secondary issue where a company's cash reserves are converted into new shares and given to existing shareholders....
My example that I can't understand : HSBC has £7000 cash, I am owed £7000 in dividends, I take 1000 shares valued at £7 each instead of cash.....Now what happens to the £7000 that HSBC still has ?
I don't think I can make my question much clearer, I am confused.