## Suddenly Increasing Stock Quantity After Receiving Dividends? What's Going On
Investors in stocks often have this question: when a company announces a dividend payout, the number of stocks in their account inexplicably increases, while the stock price drops. No money has come in, yet the stock count increases—how should this be accounted for?
In fact, when a listed company distributes dividends, it is returning the profits earned to shareholders. There are two ways to do this—**direct cash payments (cash dividends) or directly issuing additional stocks (stock dividends)**—each with its own
View OriginalInvestors in stocks often have this question: when a company announces a dividend payout, the number of stocks in their account inexplicably increases, while the stock price drops. No money has come in, yet the stock count increases—how should this be accounted for?
In fact, when a listed company distributes dividends, it is returning the profits earned to shareholders. There are two ways to do this—**direct cash payments (cash dividends) or directly issuing additional stocks (stock dividends)**—each with its own