Explore BrainMass
Share

Difference Between a Stock Dividend and a Stock Split?

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

Please help answer the following finance-related questions. Please provide a brief answer for each.

What is the difference between a stock dividend and a stock split?

As a stockholder, would you prefer to see your company declare a 100% stock dividend or a 2-for-1 split? Assume that either action is feasible.

© BrainMass Inc. brainmass.com September 20, 2018, 10:30 am ad1c9bdddf - https://brainmass.com/business/stock-dividends-and-stock-splits/difference-between-stock-dividend-stock-split-443805

Solution Preview

Dividends and Stock Splits

Problem: What is the difference between a stock dividend and a stock split? As a stockholder, would you prefer to see your company declares a 100% stock dividend or a 2-for-1 split? Assume that either action is feasible.

Solution: There are two kinds of dividend stock. A cash dividend and a stock dividend. A cash dividend is paid in form of cash and is taxable. A stock dividend is a dividend paid as ...

Solution Summary

This following posting addresses questions regarding dividend stocks. The solution explains the difference between dividends and stock splits in 260 words. Some concepts discussed include tax consequences and investor's decisions regarding stocks.

$2.19