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6. STOCK SDIVIDEND. The following are things that occur in a stock dividend. 1.Par Value or Book Value is reduced by 50%. 2.No Change in

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6. STOCK SDIVIDEND. The following are things that occur in a stock dividend. 1.Par Value or Book Value is reduced by 50%. 2.No Change in RE or Total Stockholder Equity 3.Given to Sareholders as Split or stock dividend , Given to Stockholders of Record in same % proportion they own at same Par or Book Value 4. Number of shares double 5.Mkt Price of share goes down usually 6.A JE needs not to be made as there is no effect on Retained Earnings. 7.Stock Dividend or Stock Split : CS is issued to Shareholders 8.There is No Effect on Equity as No JE Required 9.Stock Dividend and stock split comes out of RE. Like a Cash Dividend, it can only come out of RE. Total Stockholder Equity remains same. 10. Mkt Price of share goes up usually 6. STOCK SDIVIDEND. The following are things that occur in a stock dividend. 1.Par Value or Book Value is reduced by 50%. 2.No Change in RE or Total Stockholder Equity 3.Given to Sareholders as Split or stock dividend , Given to Stockholders of Record in same % proportion they own at same Par or Book Value 4. Number of shares double 5.Mkt Price of share goes down usually 6.A JE needs not to be made as there is no effect on Retained Earnings. 7.Stock Dividend or Stock Split : CS is issued to Shareholders 8.There is No Effect on Equity as No JE Required 9.Stock Dividend and stock split comes out of RE. Like a Cash Dividend, it can only come out of RE. Total Stockholder Equity remains same. 10. Mkt Price of share goes up usually

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