A stock dividend reduces a corporation's assets and its stockholders' equity.

Name: A stock dividend reduces a corporation's assets and its stockholders' equity.
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Question

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A stock dividend does not reduce a corporation's assets or stockholders' equity. Instead, it changes the composition of stockholders' equity by distributing additional shares of stock to current stockholders. This can result in a decrease in the value of each individual share, but the overall value of the corporation remains the same.

A Stock Dividend Reduces a Corporation's Assets and Its Stockholders