Stock splits and stock dividends are basically the same from the viewpoint of the shareholders but not from the viewpoint of the corporation.

Question

Quizplus · Accepted Answer

From the shareholders' perspective, both stock splits and stock dividends increase the number of shares they own without changing the total value of their holdings. However, from the corporation's viewpoint, stock splits adjust the share price and number of shares outstanding, while stock dividends involve distributing additional shares as a form of dividend, impacting retained earnings.

Stock Splits and Stock Dividends Are Basically the Same from the Viewpoint