The CEO of your company has asked you to make a speech at the next board of directors meeting to the directors on stocks and dividends.
Explain the following:
What are the differences between a stock dividend, a stock-split, and treasury stock?
For each event:
- explain the effects to stockholders
- explain the effects on the financial statements of the corporation
Discuss why it is important to know what the company's net income and not just rely on the stock price.