Diminishing marginal utility and Scrip issue: Difference between pages

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imported>Doug Williamson
(Classify page.)
 
imported>Doug Williamson
(Add reference to Scrip dividend.)
 
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''Economics''. 
An issue of bonus shares in proportion to existing shares held.
 
The theory that consumption of each additional unit of a product or service results in the marginal utility decreasing.


A 'one-for-one' scrip issue would mean that one new share was issued for each share held.  This would effectively halve the share price; each shareholder would still have the same share value.


== See also ==
== See also ==
* [[Marginal utility]]
* [[Share split]]
* [[Utility]]
* [[Scrip dividend]]
 
[[Category:The_business_context]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 21:59, 19 August 2013

An issue of bonus shares in proportion to existing shares held.

A 'one-for-one' scrip issue would mean that one new share was issued for each share held. This would effectively halve the share price; each shareholder would still have the same share value.

See also