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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: TimbaBear who wrote (23320)	5/17/1999 8:33:00 AM
From: SE	Read Replies (3) \| Respond to of 44573

On a stock dividend the shareholder gets nothing but more certificates and must allocate their original basis across all shares held after the stock dividend is received. Same situation with a stock split. There is no current taxable event in either case, the basis is re-allocated. I fail to see the income event to the shareholder. As there is no tax effect to the shareholder, I trust it has something to do at the corporate level, but at this point fail to see what it is....it is either something along tax lines or something to do with the procedural aspects of the transaction.