Stock Dividend vs Stock Split Accounting

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Stock Dividend vs Stock Split Accounting

Рет қаралды 20,134

Күн бұрын

Stock dividends and stock splits both increase the number of shares outstanding. However, there are several differences in the accounting for stock dividends and stock splits.
First, a stock split reduces the par value per share, while a stock dividend has no effect on the par value per share.
Second, a stock split doesn't require a journal entry, as it has no effect on the financial statements. A stock dividend, however, does affect the financial statements (the effect depends on whether it is a small stock dividend or a large stock dividend).
Third, a stock dividend increases the common stock account. If the stock dividend is small (less than 20-25% of the shares outstanding), then the stock dividend also reduces the retained earnings account by the fair market value of the stock multiplied by the number of shares being distributed in the stock dividend. If the stock dividend is large (more than 20-25% of the shares outstanding), then the stock dividend reduces the retained earnings account (or the additional paid-in capital account) by the par value of the stock multiplied by the number of shares being distributed in the stock dividend.
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Пікірлер: 34

@MartaBurdi5 5 ай бұрын

Great video, I've been interested in investing ever since I came across articles of people making up to $150,000 and more in this period, thanks for the video but is it really possible for a retail investor to achieve this in months?

@user-ub9md6pi6n 5 ай бұрын

Starting early is simply the best way of getting ahead to build wealth , investing remains a priority. I learnt from my last year's experience , I am able to build a suitable life beause I invested early ahead this time.

@Lucile-ru9qq23 5 ай бұрын

that's quite impressive, you surely made a good bit of money. I myself invested in warren's BRK-A stock quite pricey but totally worth it.

@PingHora1233 5 ай бұрын

my 401k growth has been stagnant since the 2019. I wouldn't mind consulting the advisor who guides you, I really want to grow my retirement fund since I could retire in 3 years.

@user-ub9md6pi6n 5 ай бұрын

STEPHANIE KOPP MEEKS! she is whom i work with look her up.

@PingHora1233 5 ай бұрын

She appears to be well-educated and well-read. I ran a Goo-gle search on her name and came across her website; thank you for sharing..

@name-ht2qz 4 ай бұрын

Its really comforting to know I wasn't the only one who found Stock Dividends and Split Stock similar and confusing. Thanks @Edspira for clarifying the concepts

@arikaGME 2 жыл бұрын

How many GME HODL’ers trying to understand the dividend?

@waitingpatiently 2 жыл бұрын

LFG!!!!! 🙌🏻❤️

@coomer8410 2 жыл бұрын

Legggggo!

@markomarkovic7280 2 жыл бұрын

🚀

@mot8507 2 жыл бұрын

I do now.

@mot8507 2 жыл бұрын

Check how GMEs borrowing rate 4x on Friday. I understand why after watching this.

@mot8507 2 жыл бұрын

This has been suppressed for the past 2 week i searched everywhere for this info(the difference between stock split and stock split in the form of a dividend) i searched all over the web and nothing. On Saturday i searched the same as i have been searching for the past 2 week and this was on the first page of KZfaq it was not on the first 30 these past 2 weeks. Algos suppressing the info because of the #GME stock split via dividend. Thank You. I now know why GMEs borrowing rate 4x on Friday. I understand why after watching this.

@TonyDenaro 2 жыл бұрын

In July did a video just like this explaining what was going to happen to GME. What we couldn’t figure out is the Why? Why would a company choose to do a large stock split dividend vs a regular stock split. Any insight would be appreciated.

@jeremypage6093 7 ай бұрын

You did a wonderful job explaining this. Thank you.

@DakotaEdens 3 ай бұрын

How does the stock dividend and stock split affect the total authorized shares? How does it affect the issued shares and unissued shares? Do they take more stock from the unissued shares for the stock dividend? Do they do the same for stock split or do the stocks split from one stock or does it depend on the P/E ratio? Sorry a lot of questions, just want to understand how they affect each other in those ways.

@gibsong8498 Жыл бұрын

Edspira is the GOAT man

@GameTimeWrestling 2 жыл бұрын

Please compare GME to AMC. Part of the AMC movement and with @Tony Denaro below. Ty

@jomarjavier8264 2 жыл бұрын

If only this was uploaded before my exam :(

@Edspira 2 жыл бұрын

So sorry! 😟

@arjunarun9174 Жыл бұрын

Why is it that for a small dividend, common stock has the dividend distributable plug in account but for APIC you can just directly increase it?

@8u2b 2 жыл бұрын

Why would a company choose one over the other?

@lindohlily 9 ай бұрын

how is retained earnings reducing when u are only paying them in shares and not cash?

@MyFinancialFocus 2 жыл бұрын

Meta verse plumbing lol

@Binfopl 2 жыл бұрын

Hod did you find par value?

@juannymoney9901 5 ай бұрын

Its given if its not its the balance in your common stock account/shares issued

@go-away-5555 2 жыл бұрын

If it's between 20-25% outstanding how is it determined if it's a large or small stock dividend? Does the company get to choose?

@shezas.6660 Жыл бұрын

I think the company director is the one that declares percentage of stock dividend

@ScattMatt3000 5 ай бұрын

Large is anything more than 25% the cut off range is 25%

@SNEHDENCARDOSO 2 жыл бұрын

Indidnt understand anything

@Albertmann 2 жыл бұрын

🖍🦍🍌 🚀🌕 💎🙌🏼 $GME

@waitingpatiently 2 жыл бұрын

MOASS confirmed 💎 🙌🏻