Stock splits and stock dividends are just paper transactions with no real economic value.

Question

Quizplus · Accepted Answer

Stock splits and stock dividends may not have a direct impact on the company's financials, but they can have an impact on the stock price and investor perception, which can ultimately affect the company's market capitalization and shareholder returns. However, they are still considered paper transactions because they do not involve any actual transfer of economic value.

Stock Splits and Stock Dividends Are Just Paper Transactions with No