From a company’s perspective explain the significance of the following events
a. stock splits
b. stock dividends
c. cash dividends

Explanation:

a)  stock split: is a phenomenon whereby a firm or people in charge of deciding the operational modulus of a company decides to amplify the market segment or market power by issuing more shares to current shareholders. The significance here is to make market participation or power in term of shares seem more affordable to small investors even though the underlying value of the company has not changed

b) Stock Dividends: can be described as a type of payment in which payment are made on shares . it's a form of additional shares on existing shares in form of interest to shareholders. The significance here is that it creates room for reinvestment for investor share holders in and within the company.

c) Cash Dividend: This can be related to stock dividend. However, the difference is that the benefit or interest are rewarded in form of cash payment or benefit. It is when cash rewards are transferred to investor through wire transfer, bank deposit etc in form of interest on investment or dividend. The significant can be likened to that of stock dividend, that is it create room for reinvestment.

1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

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