What are stock dividends and stock splits? Why might a company want to issue them instead...

What are stock dividends and stock splits? Why might a company want to issue them instead of a cash dividend?

Expert Solution

Answer -

Stock dividends :- A stock dividend is a dividend paid to shareholders in the form of shares rather than cash.

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Stock splits :- It means splitting one share of stock into more shares.

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A company want to issue stock dividends and stock splits instead of a cash dividend in order to increase liquidity of the shares.

ekkarill92 answered 2 years ago

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