In case of stock dividend, the shareholder's proportion of ownership in a firm remains the same, and as long as the firm's earnings remain unchanged, so does his or her share of total earnings.

Question

Quizplus · Accepted Answer

Stock dividend does not change the proportion of ownership in a firm, hence the shareholder's share of earnings also remains the same as long as the firm's earnings remain unchanged.

In Case of Stock Dividend, the Shareholder's Proportion of Ownership