I do not know

I do not know










While researching stock dividends, stock splits, and reverse splits I visited a few different websites in search of useful information. One site I did stray away from was Wikipedia, because as all good students know, the facts on Wikipedia cannot always be trusted. A couple of sites that I did come across that seemed to be reliable were Accountingcoach.com, and investopedia.com. I did also browse around beginnersinvest.about.com, but found the information to be too vague. The two sites I mentioned earlier had more detailed information. The two useful sites are basically all the same. They provide descriptions on the topics I am looking to research as well as a few examples to help the researcher fully grasp what the concept of the topic. The first site I visited was accountingcoach.com and this site is where I found helpful information on both stock splits and stock dividends. According to the site stocks splits are basically when a company offers shares to investors at rates such as two or three shares for the price of just one share, so if an investor were to buy 2 shares it would cost the same as it previously had to purchase just one share (Stock Splits and Stock Dividends). A reason why a company would do such a thing would probably be get attention from investors, or if they were a new or struggling company they may need the advantage. A stock split would be a great way to get investors interested in a company but it is not something a company would want to make a habit out of because they are essentially losing a portion of the profit from the share, and doubling the amount of shares in the company without gaining much from it. Accountingcoach.com also gave a great explanation for what a stock dividend is. According to the site a stock dividend is when a shareholder receives additional shares according to how many shares they already have with the company. For example, if a shareholder already has 20 shares in a company a 10%...

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