A 2 for 1 stock split is economically equivalent to a 100% stock dividend.

Name: A 2 for 1 stock split is economically equivalent to a 100% stock dividend.
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Question

Quizplus · Accepted Answer

Both a 2 for 1 stock split and a 100% stock dividend result in doubling the number of shares held by investors without changing the total value of their investment, effectively diluting the share price by half but increasing the number of shares owned.

A 2 for 1 Stock Split Is Economically Equivalent to a 100