Distribution of 20-25% or greater of outstanding shares as a stock dividend is generally treated as a stock split.

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When a company distributes 20-25% or greater of outstanding shares as a stock dividend, it is typically considered as a stock split. This is because the distribution of additional shares will increase the number of outstanding shares, which reduces the price per share proportionally. Therefore, shareholders will have more shares, but the overall value of their investment should remain the same.

Distribution of 20-25% or Greater of Outstanding Shares as a Stock