Does It Matter That GameStop's Split Will Be a Stock Dividend?

GameStop (NYSE: GME) wants to split its stock for the first time in 15 years. While many were caught off guard by the video game retailer's announcement, some investors were also confused because it wants the split to be "in the form of a stock dividend."

Everyone is familiar with cash dividends -- a company pays you money every month, quarter, or at some other frequency to own the stock -- but not so much a stock dividend, even though most companies describe their splits as a dividend. 

Tesla (NASDAQ: TSLA), for example, also recently announced that it wants to split its stock in the form of a stock dividend. But many internet stock traders seem to think that because GameStop has a high percentage of shares sold short, the language has special significance. 

Continue reading

Source Fool.com