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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.