(d) A stock dividend is an issuance by a corporation of
its own common shares to its common shareholders without
consideration to give the recipient shareholders evidence of a
part of their respective interests in accumulated corporate earnings
without distribution of cash or other property. A stock split
is defined as an issuance by a corporation of common shares to its
common shareholders without consideration...prompted mainly
by a desire to increase the number of outstanding shares for the
purpose of effecting a reduction in their unit market price and,
thereby, of obtaining wider distribution and improved marketability
of the shares. Thus, neither of these transactions results in
a transfer of assets among the shareholders and the corporation.
While the allocation of stockholders’ equity among the various
accounts (retained earnings, common stock, and additional paidin
capital) will change, the total stockholders’ equity is not affected.