A friend of yours receives a stock dividend on an investment. She believes stock dividends are the

Question:

A friend of yours receives a stock on an investment. She believes stock dividends are the same as cash dividends. Explain why the two are not the same.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...