They will dilute as if it was a 20 for 1 forward split. You are still diluteing the stock. With a stock split your value is the same afterward , a dividend is different in that it is considered a dividend payout so my question is the tax ramafications. With a split you dont get hit with tax , a dividend could be very different. That would be like rubbing salt into the wound. We are underwater, get a dividend that returns some of our old stock but have to pay tax on it even though we are still behind. That would really suck.
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