Puja..

The CEO of your company has asked you to make a speech at the next board of directors meeting to the directors on stocks and dividends.

Explain the following:

• What are the differences between a stock dividend, a stock-split, and treasury stock?
• For each event:
  • explain the effects to stockholders
  • explain the effects on the financial statements of the corporation
• Discuss why it is important to know what the company’s net income and not just rely on the stock price.