
the company will usually pay the cash dividend in the absence of any
instructions to the contrary, it is important to check the terms of the
issue in case the basic offer is for scrip. In most cases, it is possible to
issue standing instructions for future scrip dividends.
Stock situations
A stock situation is any event that changes the nature or description
of a company’s securities. Stock situations are either optional, where
the shareholder has a choice, or non-optional, where the shareholder
is required to accept the company’s decision for the change.
There is the problem of collating sufficient information to allow the
dealer or client to make a ...