After the distribution of stock dividends, the company's shareholders' equity remains unchanged, and the increase in equity this year over the previous year is equivalent to the net profit

Stock dividends.

Difference and cash dividends. It is the way to participate in the company, the shares are allocated.

I didn’t see it on Baidu Encyclopedia.

But because different components include different scopes of shareholder distribution, there are big differences.

Normally, preferred stockholders and common stockholders are distributed in equal proportions. All shareholders are then allocated equal shares of stock. Each shareholder's shareholding ratio remains unchanged. The larger total number of shares outstanding. Shares fell accordingly.

If it is distributed only to common shareholders, then the total amount of outstanding shares will be larger. The shareholding ratio of each shareholder should be greater than that of preferred shareholders who are ordinary shareholders. Proportionate share price decline.

On the contrary preferred stockholders.

However, if allocations are made only to a certain class of shareholders and not to all shareholders, the shareholder equity structure - that is, the shareholding ratio of each class of shareholders to the total number of company shares must change. So, we change the ratio of total shareholders' equity. Possible position switches on leaderboards. Note here that this is possible.

However, in real life, if you are a decision-maker of a joint-stock enterprise (company), you should not allocate quotas that are large enough to affect their shareholding ratio. That is, if you hold 51% of the shares, the decision-making rights and distribution are completed, and the second place has no decision-making rights, it does not seem to be a joke.

So, you said, the teacher will not change. From a practical point of view. Theoretical perspectives can be changed.

Finally, the amounts in this statement of stockholders' equity are not accurate enough. This word is used to measure the concept of money, more accurately the market value of a stock or share. Theoretically shareholders can respond to changing markets - because stocks change too much. However, the actual strands are split, thus making the 2,2 variations into three categories. With more money comes depreciation for a reason over the long term. stock price.

So the cash dividend policy deserves more attention than the stock dividend.