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Investment Analysis Clubs / Grape's Fisher Kings


Subject:  Re: Stock Dividends and Stock Splits Date:  7/11/2007  10:42 PM
Author:  PhilWeiss Number:  2789 of 2794

It's been awhile since I looked at this but there is a difference. A stock split simply increases the number of shares by a pre-determined ratio. There should not be an impact on par value or paid-in-capital. Here the company simply increases the number of shares outstanding.

If there is a stock dividend, each shareholder receives additional shares as the firm issues new shares in lieu of paying a cash dividend. If 10%, shareholders would get 10 shares for each 100 sh