Explain each of the Stock Dividend vs Stock Split Comparison Table The Basis of Comparison Stock Dividend

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Explain each of the Stock Dividend vs Stock Split Comparison Table

The Basis of Comparison	Stock Dividend	Stock Split
Meaning	Dividend in the form of Equity Shares	Division of Equity Shares
Purpose	When there is no Cash Liquidity with the company	To reduce the market price of Share
Issued from	Issued from the Free Reserves	Only increase In the no. of shares, no change in Value of Issued Shares.
Shares	Additional Shares are allotted to existing shares Holder	Already Held Shares are divided
Accounting	Amount from Reserves is transferred to issued shares by passing Journal entry	Whereas no Journal Entry is passed in
Type	No type	Two types of Stock Split: Forward Stock Split Reverse Stock Split

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Fundamental Accounting Principles Volume II

Fundamental Accounting Principles Volume II

ISBN: 978-1259066511

14th Canadian Edition

Authors: Larson Kermit, Jensen Tilly

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Posted Date: Feb 13, 2024 12:31 AM

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