Difference between a stock dividend and a stock split


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

  1. Stock splits create greater economic benefits to shareholders than stock dividends.
  2. Stock splits increase EPS more than stock dividends.
  3. There is no economic difference between a stock dividend and a stock split.
  4. Stock dividends create greater economic benefits to shareholders than stock splits.

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Accounting Basics: Difference between a stock dividend and a stock split
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