A stock dividend will cause a decrease in the total number of shares issued and outstanding.

Question

Quizplus · Accepted Answer

A stock dividend is when a company issues additional shares of stock to its shareholders, but in proportion to their existing holdings. This means that while the number of shares issued increases, the total number of shares outstanding also increases proportionally, resulting in no net decrease in the overall number of shares outstanding.

A Stock Dividend Will Cause a Decrease in the Total