Finance Mock Interview

Master 32 Finance interview questions covering financial modeling, risk analysis, and valuation.

Question 19 of 32

What is a Stock Split and Stock Dividend?

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Bobbi Witt
Bobbi Witt

Bobbi Witt is an HR Manager and Senior Level Finance and Accounting Consultant. Her experience includes 9 years at a Fortune 500 company where she held a wide range of financial and management accountabilities.

A stock split is when a company splits its stock into 2 or more pieces. For example a 2 for 1 split. A company splits its stock for various reasons. One of the reasons is to make the stock available for the investors who invest in the stock of the companies which are inexpensive. The probability of growth for those stocks also increases. Stock Dividend is when the company distributes additional shares in lieu of cash as dividends.