Distinguishing a stock dividend from a stock split can sometimes cause difficulties.Usually firms treat small-percentage distributions, say less than a _____ increase in the number of shares, as stock dividends and larger ones as stock splits.

Question

Quizplus · Accepted Answer

A stock dividend is typically considered a small-percentage distribution, often less than 25%, whereas a stock split involves a larger increase in the number of shares.

Distinguishing a Stock Dividend from a Stock Split Can Sometimes