The prescribed accounting treatment for stock dividends implicitly assumes that shareholders are fooled by “small” stock dividends and benefit by the…

The prescribed accounting treatment for stock dividends implicitly assumes that shareholders are fooled by “small” stock dividends and benefit by the market value of their additional shares. Explain this statement. Is it logical? The prescribed accounting treatment for stock dividends implicitly assumes that shareholders are fooled by "small" stock dividends and benefit by the market value of their additional…

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