Accumulating Shares

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Dictionary Says

Definition of 'Accumulating Shares'

Common stock given to current shareholders of a company in place of or in addition to a dividend. By accumulating shares shareholders don’t have to pay income tax on these shares; however, it is still mandatory to pay capital gains tax on them.  Sometimes companies pay out these shares in addition to dividends paid in cash. These shares are one way companies replace annual income with capital growth. Also referred to as a stock dividend.
Investopedia Says

Investopedia explains 'Accumulating Shares'

These types of shares are different from dividends in that dividends are a distribution made to shareholders directly out of company profits and usually paid in cash. In certain situations, these shares can also be paid in the form of property. Stock dividends are paid out to shareholders in the form of shares of stock that increases a stockholders share amount.
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'Accumulating Shares'

  • Market Breadth: Volume Studies | Investopedia

    http://www.investopedia.com/university/marketbreadth/marketbreadth1.asp
    ... Over time, if price moves steadily upward with strong volume, this indicates that
    buyers are accumulating shares and supply is becoming increasingly limited ...

  • It's Time to Sell These 2 Tech Stocks

    http://stocks.investopedia.com/stock-analysis/moneyshow/ItsTimetoSellThese2TechStocks.aspx
    ... potential is greater than the downside risk, given the current market conditions
    and my belief we’re due for a dip, if I were accumulating shares of HITT, I ...

  • Hi-Tech Pharmacal Has A Nose For Profits

    http://stocks.investopedia.com/stock-analysis/2011/Hi-Tech-Pharmacal-Has-A-Nose-For-Profits-HITK-MCK-CAH-ABC-GSK-PAR0126.aspx
    ... Together they hold 2.95 million shares. Five years ago, the brothers held 2.4 million
    shares. It's a great sign when management is accumulating shares. ...

  • How Brokers Can Avoid A Market-Maker's Tricks

    http://www.investopedia.com/articles/financialcareers/06/mmakertricks.asp
    ... Learn the players in the stock. By watching the action on a "level 2" or "level
    3" screen, you can tell who is accumulating shares or unloading them. ...

  • The Market Participant Playbook

    http://www.investopedia.com/articles/trading/08/institutional-effect.asp
    ... campaigns. When accumulating shares, a manager's goal is to acquire shares
    methodically, without driving prices up too rapidly. The ...

  • Pinpoint Takeovers First

    http://www.investopedia.com/articles/stocks/07/takeover_stocks.asp
    ... shares outstanding. A company with an eye to making an eventual acquisition
    may begin quietly by accumulating shares. Once the ownership ...

  • Pros And Cons Of Offshore Investing

    http://www.investopedia.com/articles/02/020602.asp
    ... From the point of view of a high-profile investor, however, keeping information,
    such as the investor's identity, secret while accumulating shares of a public ...

  • 5 Stocks From The Tiger Portfolio

    http://stocks.investopedia.com/stock-analysis/2010/5-Stocks-From-The-Tiger-Portfolio-VLCM-RSH-OMX-MW-LTM-CHS-CMG-DLTR1126.aspx
    ... When the stock price dropped by 34% in February 2008, McCormack bought heavily,
    accumulating 1.1 million shares somewhere between $29 and $44. ...

  • Berkshire's Q2 Portfolio Shuffle Explained

    http://stocks.investopedia.com/stock-analysis/2007/Berkshires_Q2_Portfolio_Shuffle_Explained_BRKA.aspx
    ... total holdings. In the second quarter, the company added to its existing
    position, accumulating some 25.5 million shares. I think ...

  • Don't Lose Your Shirt On Mutual Fund Sales

    http://www.investopedia.com/articles/mutualfund/cost-basis-mutual-funds.asp
    ... for the unexpected taxable gains as it assumes the first shares acquired were the
    first shares that you sold. For people that have been accumulating a position ...

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