What Is the Difference Between a Stock Split and Stock

question 113

Essay

What is the difference between a stock split and stock dividend?

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Definitions:

Cumulative Preferred

Refers to preferred stock where dividends accumulate if not paid out, with these unpaid dividends required to be paid out before any dividends can be issued on common stock.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock.

Income Statements

A financial statement that shows a company's revenues, expenses, and net income over a specific period, summarizing its financial performance.

Stock Dividends

Stock dividends are a form of dividend payment made by a corporation to its shareholders in additional shares of stock, instead of cash.