When a stock dividend is small, for example a 10% stock dividend,

		Retained earnings is not reduced because the dividend is immaterial
		Retained earnings is reduced by the fair value of the stock
		Retained earnings is reduced to the par value of the stock
		Paid-in capital in excess of par value is unaffected

The purchase of treasury stock

		decreases the number of shares authorized
		decreases the number of shares issued
		decreases the number of shares outstanding
		decreases the number of shares authorized, issued, and outstanding