The pros and cons

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The pros and cons of 送红股

Dividends of listed companies, our shareholders generally 送红股 preference.

In fact, This

the listed companies, in dividends to shareholders to take 送红股 way, with no dividends and accumulated profits, such as the way to next year and there is no difference. as the development of capital used in production. in several ways, are to be distributed to shareholders in corporate profits next year On the one hand, it enhanced the strength of the operation of listed companies to further expand the production scale of enterprises, on the other hand, it does not need to come up with the cash dividend as a greater amount of the cash dividend to cope with the work, because companies are generally cash retained is not too much. companies are more favorable. When non-listed companies to shareholders accumulated dividends or profits to the next year, this part of the profits to fund the form of capital recorded in the balance sheet. And 送红股 to shareholders, this part of the profit will be recorded as additional equity in the share capital and become part of the interests of shareholders. However, when 送红股 because of the share capital of listed companies has changed, on the one hand, to be a listed company to the local industrial and commercial administration to re-register, and needs to be made public notice of changes in equity. However, regardless of the above to take a number of ways to deal with what kind of profit the previous year, listed companies are not the total amount of the net assets of any changes in the operating strength of the next year there will not be any form of change. As for shareholders,送红股 take the form of the distribution of profits will be better than the non-distribution of profits. Although a number of ways that will not change the proportion of shareholders holding not increase or decrease in gold stocks, because stocks in 送红股 will also be broken up into smaller units of the net assets per share of stock and reduce the proportion of the amount, but 送红股 investors can directly improve economic efficiency. Its based on the following: Therefore, this form of several listed

1. In accordance with China's current rules, the taxation of stock dividends can be implemented in accordance with the savings rate reduction over the same period, that is, to give certain concessions to the specific tax is the dividend per share over the same period, less the savings rate of 20 percent after the stock collection of income tax, such each dividend tax to be levied is: Income Tax = (dividend per share - this year's one-year time deposit interest rate) × 20% When listed companies are not allocated in the current year profits or accumulated profits to the next year, next year is bound to increase the amount of dividends, investors enjoy a reduction of the preferential tax breaks.

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2. In the stock in short supply stage,送红股 shareholders equity increased by the amount of speculation in the market in favor of rising stock prices and thus contribute to the spread of income investors. 3. 送红股 after the increase in the number of shares at the same time as a result of reducing the ex-dividend stock price, the lower the threshold for the purchase of such shares, shares in the local supply and demand can change the relationship between the stock price to increase. Will be sent in cash, compared with 送红股, both listed companies return to shareholders, but is way different. Listed companies as long as a year in operating profits, it is However, the distribution of cash dividends and 送红股 the return on shareholders.

be different, if the two compared with bank deposits, somewhat similar to keep the cash dividend rate of the check, that is, funds deposited into bank accounts, the annual income from the first. 送红股 is similar to the compound of the deposits, the bank every time interval of interest to depositors due to the principal, so that renewable sources of interest of interest, a lump-sum payment after the expiration. reproduction is an act of re-investment, it faces the same risk. However, such a If the enterprises return bonus uncertainty has its way, because the profit to capital invested in in the coming years in relatively stable business, business to develop more smoothly, and the net assets can yield above-average, then the shareholders can be expected to return; if the net assets of listed companies is lower than the average level of income or bonus After the poor management of listed companies, shareholders in the coming years not only not expected to return, and also the previous year due to the fixed assets of a dividend precipitation. instruments. Dividends of listed companies is to send cash or 送红股 way, it depends on the majority shares of the company's future operating conditions and forecasts to judge, because the dividend is to be discussed and approved by shareholders of the General Assembly. However, some of China's listed companies for more than half of the shares of stock for the country, and on behalf of its stake in listed companies are basically managers. Due to the vital interests of the impact of managers agree with almost all the development and expansion of enterprises, so the dividends of listed companies in China, the 送 红股 very common phenomenon. 送红股 such as cash on dividends, because shareholders can choose to invest in cash and access to other higher margin stock or investment