Stock Split In The Form Of A Dividend

A stock split through a stock dividend involves a company issuing additional shares to shareholders, effectively increasing the number of shares outstanding while decreasing the price per share. This action resembles a traditional stock split but is accounted for as a dividend, where the company transfers value from retained earnings to its capital stock accounts. Shareholders receive more shares, which reduces the stock's market price, making it more accessible to investors. This method combines the immediate reward perception of dividends with the liquidity benefits of stock splits.
This style of distribution can be particularly appealing for companies looking to conserve cash while still offering something of value to their shareholders that also lowers their stock price to attract more investors!