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13 Steps to Investing Foolishly / Stock Splits


Subject:  Re: Dividend Split Question Date:  2/22/2001  7:54 PM
Author:  TMFDawn Number:  841 of 943


<<<When a company announces that it will split its stock, in the form of a stock dividend, what does this mean? I ask because it is stated in releases as if it is different from a basic 2 shares for each 1 share owned (as an example). Maybe it's just terminology but clarification would be appreciated. Thanks. >>>

It is just terminology. A stock dividend is a stock split. You would retain the original purchase date for all shares and adjust your cost basis across the shares.

TMF Dawn
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