I just read this in The Intelligent Investor, by Benjamin Graham:
A stock split may be carried out by what technically may be called a stock dividend, which involves a transfer of sums from earned surplus to capital account; or else by a change in par value, which does not affect the surplus account.
I know about the second method of stock splitting: just divide the shares and price! But the first one I never heard of, and haven't been able to find it online. It seems that transferring money "from surplus to capital account" would just make the shares pricier?
Could you please explain this method of stock splitting?