Lincare boosts trading volume, liquidity
CLEARWATER, Fla. - Lincare's board of directors declared a three-for-two stock split last week.
The stock split will take the form of a 50% dividend that will be distributed on June 15, 2010, to shareholders of record on June 3, 2010, according to a release.
"We believe this is a good opportunity to increase the trading volume and liquidity of our common shares," stated CEO John Byrnes.
The Web site Investopedia.com has this to say about stock splits:
A corporate action in which a company's existing shares are divided into multiple shares. Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, because no real value has been added as a result of the split.
For example, in a 2-for-1 split, each stockholder receives an additional share for each share he or she holds. One reason as to why stock splits are performed is that a company's share prices have grown so high that to many investors, the shares are too expensive to buy in round lots.
Today, Lincare's stock is trading at $44.80 to $46.35 per share.
Lincare will not issue fractional shares in connection with the stock split, according to the release. Any resulting fractional shares will be paid in cash based on the closing price of the common stock on June 3, 2010.