scottsdad,

<<<When a company announces that it will split its shares two for one in the form of a stock dividend....how does that work? If I own 100 shares at $50, do I then own 200 shares at $50? And I have to pay capital gains on $5000?>>>

It is the same thing as a plain, old stock split. After the split, you will own 200 shares at $25. This is not a taxable event.

TMF Dawn

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