What kind of transaction is the declaration of a stock dividend?

Question

Quizplus · Accepted Answer

The declaration of a stock dividend involves exchanging retained earnings (an equity claim) for additional shares of stock, which increases the number of outstanding shares and dilutes the ownership percentage of existing shareholders. This is a claims exchange transaction, as it involves shareholders exchanging their claims on the company's assets for an increased number of claims of smaller value.

What Kind of Transaction Is the Declaration of a Stock