Selling government securities is constructional because it takes money out of circulation.

Predatory pricing is intentionally pricing below cost to eliminate competition and reduce supply. Many statutes prohibit the practice. Pricing is predatory when two conditions are met: (1) the seller's price is below an appropriate measure of its costs, and (2) it has a reasonable prospect of recovering the resulting loss through higher prices or greater market share.

The share split will double the number of shares outstanding to 2,000. The 10% share dividend will increase the number of outstanding shares to 1,111. The higher number of shares in the split will result in a lower earnings per share than will result from the share dividend. An entity has issued 1,000 ordinary shares with a par value of US$10 and its credit balance in retained earnings is US $5,000. Two proposals are under consideration. The first is a share split giving each shareholder two new shares for each share formerly held. The second is to declare and distribute a 10% share dividend.