26 CFR § 1 305-3 Disproportionate distributions. Electronic Code of Federal Regulations e-CFR LII Legal Information Institute
A stock dividend is considered small if the shares issued are less than 25% of the total value of shares outstanding before the dividend. In addition, stock dividends don’t affect the value of the company. So, if a company issues a stock dividend of 5%, it will pay 0.05 shares for every share owned by […]
