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Unformatted text preview: Web Site Search Your Name Axia College of University of Phoenix ACC 230 Financial Reporting: Peeking Under the Financial Hood While I was searching for the definitions of stock dividends, stock splits and reverse splits I found two sites which were found to be very helpful and effective as they contain the definitions as well as examples which can easily be understood. The definitions which I found on the above website of stock dividends, stock splits and reverse splits are briefly explained below. Stock dividends: Stock dividends which is also known as scrip dividends are dividends payments made in the form of additional shares rather paying shareholders cash. Companies often use this option when there is shortage in the availability of cash. These are often distributed in the form of fractions paid per existence share. Advantage of stock dividend is that the owners are not further diluted. An example would be issuing a stock dividend of 2 shares for each single share. Distribution of stock dividends will not be as positive dividend of 2 shares for each single share....
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This note was uploaded on 01/05/2012 for the course 101 melissa jo taught by Professor Acc101 during the Spring '11 term at Aarhus Universitet.
- Spring '11