July 15, 2009 1005:1000
June 20, 2006 103:100
June 13, 2005 105:100
July 7, 2003 108:100
June 19, 2002 11:10
I know what splits are, but normally they are something like 10:1. I'm guessing there's a good reason to do such weird splits, but I've never seen it before. Is it just to get in the news?
Why would TSMC have weird splits like 1005:1000?
byu/VirtualLife76 instocks
Posted by VirtualLife76
4 Comments
could be for similar reasons you’d rather own 50.1% of a company over 50% even tho the value is very similar the power it gives you is absolute with 50.1%. I don’t know their internal share structure / how their splits were structured – have you looked?
They are not really splits, but “stock dividends” where the company pays out shares of stock instead of cash. Accounting-wise, they are recorded by customers as stock splits since the basis adjustment comes out the same.
Exchange rates
We do those types of weird split in the taiwaness market. We add in weird dilution like a few percentage of stock. I think it makes people believe they are getting more stocks when it actually do nothing. It’s kind of like an illusion of insteading paying 5% of dividend you dilute stock by 5% and since people are getting 5% more shares, they for some weird reason think they are making money. We actually call diluting stocks a few percentage stock dividend in taiwan. And we dividend paid with cash, cash dividend.
And it probably have something to do with how stock is traded in the taiwanes stock exchange. We trade in lots of 1000 shares each. And since we all trade in lots of 1000 share each, it become really hard for people to trade stocks if 1 unit(1000 shares) is too expensive people can’t trade it. So companies have a habit to dilute the shares to make it easier to trade. We “usually” don’t do 2 to 1 split or 5 to 1 split like in the USA.