You mention stock dividends and the number of shares outstanding determines how we account for these. According to FASB ASC 505-20-25-3 (Stock Dividends and Stock Splits): The point at which the relative size of the additional shares issued becomes large enough to materially influence the unit market price of the stock will vary with individual entities and under differing market conditions and, therefore, no single percentage can be established as a standard for determining when the capitalization of retained earnings in excess of legal requirements is called for and when it is not. Except for a few instances, the issuance of additional shares of less than 20 or 25 percent of the number of previously outstanding shares would call for treatment as a stock dividend as described in paragraph 505-20-30-3. If a party owns less than 20-25 percent, what is this typically considered on the investor's side?