At what percentage of the outstanding shares is a stock dividend considered a stock split?
A)10%
B)20%
C)25%
D)50%

Question

Quizplus · Accepted Answer

A stock dividend is considered a stock split when the percentage of the outstanding shares issued as a dividend is 25% or more. In other words, if a company issues a dividend that represents 25% or more of its outstanding shares, it is classified as a stock split. This means that the company is essentially dividing its existing shares into smaller units, which can help to make the stock more affordable for investors and increase its liquidity on the market.

At What Percentage of the Outstanding Shares Is a Stock