A 100% stock dividend means that you get one share of the “stock dividend” for every share you own.
For example, Google did this in 2014 when they gave all of their Class A shareholders one class C share for every Class A that they owned.
What is a large stock dividend?
Definition: A large stock dividend is a stock dividend that distributes more than 25% of the outstanding shares of the company.
What is stock dividend example?
A stock dividend is the issuance by a corporation of its common stock to shareholders without any consideration. For example, when a company declares a 15% stock dividend, this means that every shareholder receives an additional 15 shares for every 100 shares he already owns.
What is the effect of a 10% stock dividend?
If the board of directors approves a 10% stock dividend, each stockholder will get an additional share for each 10 shares held. Since every stockholder received additional shares, and since the corporation is no better off after the stock dividend, the value of each share should decrease.
What is the effect of a stock dividend?
Stock dividends have no effect on the total amount of stockholders’ equity or on net assets. They merely decrease retained earnings and increase paid-in capital by an equal amount. Immediately after the distribution of a stock dividend, each share of similar stock has a lower book value per share.