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    stephen9519's Avatar
    stephen9519 Posts: 1, Reputation: 1
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    Jun 29, 2007, 10:25 PM
    Stock Split and Stock Dividend Differentiated
    What are the differences between the accounting and securities market between the 2 methods of increasing the number of shares outstanding. The 2 methods are stock splits and stock dividends.
    cowgirl3194's Avatar
    cowgirl3194 Posts: 1, Reputation: 1
    New Member

    Jul 2, 2007, 07:00 PM
    In stock split and stock dividend, what is the difference between the accounting and security market in these two methods of increasing the number of shares outstanding?
    bhet's Avatar
    bhet Posts: 77, Reputation: 9
    Junior Member

    Jul 2, 2007, 09:04 PM
    the primary difference betwwen the two is that, in stock dividend, the company issues new shares of stock as a dividend to increase the shares issued. While in stock split, the company doesn't issue stocks, but rather they change the par value of the stock say you own 250 shares, 100 par and the company issued 2-1 stock split, you will now own 500 shares with 50 par. So technically, the company did not issue any new shares, they just lowered the par value and increased the shares issued.

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