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For questions related to the various forms of stock splits, reverse stock splits (share consolidations), etc.

9 votes
5 answers
6k views

Why is a stock dividend considered a dividend? What makes it different from a stock split?

I've been reading Principles of Corporate Finance by Brealey, Myers and Allen, but unfortunately they did not cover stock dividends. From what I understand, by paying a dividend, a company can transf …