Stock dividends and stock splits both increase the number of shares but add nothing to the value of the company.

Name: Stock dividends and stock splits both increase the number of shares but add nothing to the value of the company.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Stock dividends and stock splits do not change the underlying value of the company, they only affect the number of shares outstanding. However, they may have an impact on the stock price and the perceived value of the company in the eyes of investors.

Stock Dividends and Stock Splits Both Increase the Number of Shares