Which feature is common to both stock splits and stock dividends?

Question

Quizplus · Accepted Answer

Both stock splits and stock dividends involve increasing the number of shares outstanding. With a stock split, the number of shares outstanding is increased by issuing additional shares to existing shareholders in proportion to their current holdings. With a stock dividend, additional shares are issued to existing shareholders as a dividend, increasing the number of shares outstanding. Neither a stock split nor a stock dividend results in a reduction in total stockholders' equity or retained earnings. In fact, the value of common shareholders' equity may increase as a result of a stock split or stock dividend, as the increase in the number of shares outstanding is often accompanied by a decrease in the market value per share.

Which Feature Is Common to Both Stock Splits and Stock