Difference between term life and whole life insurance

Your loved ones will benefit from life insurance if the inevitable occurs. While it can be tough to think about your own death, choosing the right term or whole life insurance policy can protect your household and allow you to leave a legacy to those you care about the most. Let us discuss some more differences between Term Life and Whole Life Insurance with the help of the comparison given below.

What is Term life insurance?

Term life insurance provides guaranteed death benefits to the beneficiary only in the event that the policyholder passes away during the term, which is a predetermined length of time. However, if the policyholder does not pass away prior to the term expiration, some term life insurance policies have a return of premium feature that will refund some or all of the premiums. Term life insurance policies with the return of premium are typically more expensive.

What is Whole life insurance?

The simplest type of permanent life insurance is a whole life policy, which gets its name from the fact that it offers protection for the duration of your life as long as premiums are paid. Because it has a cash value component, unlike term insurance, it is not a pure life insurance product. When a portion of your premium money is invested and grows over time tax-deferred, meaning you don't pay taxes on the gains, a policy has a cash value.

Term life Vs Whole life insurance | Difference between Term life and Whole life insurance

Basically in term life insurance initial premium is low but in whole life insurance initial premium is higher than in term insurance.

Eligibility for company dividend

Term life insurance - No, Whole life insurance - Yes, depending on the company

Guaranteed death benefits

In both of the insurance guaranteed death benefits are given

Premium over time

In-term life insurance premiums may remain the same or increase over time. While in whole life insurance premium is guaranteed to remain the same.

Health exam

In terms of life insurance, in most cases, a health test is necessary but depends on the amount taken. On the other hand, a whole life insurance health test is required.

Ability to withdraw cash value during the life of the policy

Term life insurance no cash value withdrawal during the life of the policy, whereas in whole life insurance, cash value withdrawal and also loans are allowed during the life of the policy.

Length of Coverage

Typically term life insurance cover 10-30 years. If you buy through work, coverage can be up to a termination age. In contrast, the whole life insurance length of coverage is a lifetime.

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2. Term deposit Vs GIC
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4. Difference Between APR and Rate
5. Difference between insurance and assurance

Difference between insurance and assurance

In the case of Insurance and Assurance both are covering insurance,  Both work in different areas. Insurance is between insurance companies and individuals, it is a type of general insurance, On the contrary, Assurance is for the long term, and it is a type of life insurance, this is the basic difference between them.

What is Insurance?

The two parties to the agreement that governs insurance are the insurance company and the injured party. The organization that offers insurance is known as the insurer. The term "insured" refers to the person who is protected by an insurance policy as well as the party who has agreed to pay for specific losses the insured experiences. The legal representation of the insurance contract is an insurance policy that contains all the terms and conditions relating to risk indemnification. Because it is mandated by law in many countries, auto insurance is the most common type of insurance policy. Liability insurance, homeowners insurance, medical insurance, and life insurance are some alternative names for coverage options.

What is Assurance?

Assurance is a word that is frequently used in relation to insurance and life insurance policies. The policyholder is guaranteed that should a specific event occur, they will receive compensation. For example, death or disability. Compared to general insurance policies these policies typically have longer terms of validity.

Difference between Insurance and Assurance 

• Insurance is a type of general insurance, while assurance is a type of life insurance.
• The time duration of insurance is only one year, the policy is renewed on the expiry of the term. On the contrary, Assurance is for the long term, which operates over a number of years.
• Insurance is based on the principle of indemnity, While assurance is a bit different, which relies on the principle of certainty.
• Insurance provides protection against an anticipated event, Conversely assurance tends to provide protection against a definite event.
• Insurance and the reimbursement of the loss or damage will be paid only on the occurrence of the uncertain event. In an assurance, the insured amount is paid either upon the insured's passing or when the policy reaches its full maturity.
• In the case of an insurance policy prevents the specified risk or provides protection against it. Whereas in assurance the policy is taken against a definite event.
• The goal of insurance is to protect the insured against any risk. On the other hand, the main purpose of assurance is to assure payment, for the happening of the specified event.
• Insurance, the insurer promises to put the insured back in the position he or she held prior to the occurrence of the event. In contrast, assurance agrees to pay the amount promised when the event occurs.
• In order to receive risk indemnity under an insurance policy, it is the insured responsibility to pay premiums at regular intervals, As opposed to assurance, where the insured agrees to make timely premium payments in exchange for the benefit upon the occurrence of the covered event.

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2. Term deposit Vs GIC
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Difference between Insurance and Reinsurance

As we know that both insurance and reinsurance are related to the covering of risk and losses, Both work in different areas. Insurance is between insurance companies and individuals while Reinsurance is between two insurance-providing companies, this is the basic difference between them.

What is Insurance?

The insurance provider and the injured party are the two parties of the contract that governs insurance. The insurer is the company that provides insurance. The person covered by an insurance policy is referred to as the insured, and the party that agrees to pay for specific losses that the insured sustains. An insurance policy that outlines all the terms and conditions pertaining to risk indemnification serves as the legal representation of the insurance contract. A vehicle or auto insurance policy is the most popular type of insurance policy because it is required by law in many nations. Other names of coverage options include liability insurance, homeowners insurance, medical insurance, and life insurance.

What is Reinsurance?

The term reinsurance is referred to as a legal agreement between two insurance companies. The insurance company requesting risk coverage, in this case, is referred to as the ceding company, and the insurance company providing risk coverage against likely risk is referred to as the reinsurer. Both parties consent to the transfer and acceptance of risk under a predetermined proportion as a part of a reinsurance contract or agreement. When certain risks are too great for an insurance provider to bear alone, reinsurance enters the picture.

Difference between Insurance and Reinsurance 

• Insurance is a legal agreement between an insurer and an insured in which the former guarantees to defend the latter in the event of damage or death. Reinsurance is the insurance a company purchases to lessen severe losses when it decides not to bear the entire loss risk and instead shares it with another insurer.
• Insurance coverage is offered to individuals or things. While the Reainsurnace cover is offered to an insurance company by another insurance company to deal with any unforeseen losses if.
• When compared to reinsurance contracts, the risk factors and risk modeling of individual insurance contracts are very different.
• When it comes to insurance, the customer's premium payment only goes to the insurance provider. As opposed to this, in the case of reinsurance, the insurance companies split the premium paid by the insured according to a predetermined ratio.

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Difference Between APR and Rate

Interest rates and APR are two commonly misunderstood words that allude to similar ideas but have slight variances in consumption. It is critical to understand the difference between the interest rate and the annual percentage rate(APR), which includes any additional charges or fees when calculating the cost of a loan or line of credit. Let us discuss some more differences between APR and Rate with the help of the comparison given below.

What is APR?

When comparing loans, the APR is the most effective rate to examine. The APR covers not just the interest expenditure on the loan, but also any fees and other charges associated with the loan's acquisition. Broker fees, closing costs, rebates, and discount points are examples of these charges. They are sometimes given as percentages. Unless in the event of a tailored contract in which a lender offers a refund on a portion of your interest payment, the APR should always be larger than or equal to the nominal interest rate. 

What is the interest rate?

An interest rate is the promotion of the principal paid to a leader in exchange for borrowing money. The interest rate might be fixed for the duration of the loan or variable, changing as interest rates fluctuate. The federal funds reserve usually known as the Fed sets the federal funds rate, which influences interest rates. The federal funds rate is the overnight rate at which banks lend reserve balances to other banks. During an economic downturn, for the example, the fed would normally lower the federal funds rate to encourage people to spend money. 

Difference between APR and Rate 

• APR is a broader look at what you pay when you borrow money. While the Interest rate is narrower look at what you pay when you borrow money.
• APR includes points, origination fees, broker fees, and closing costs. While the Interest rate does not include other fees connected with your loan.
• APR is mainly controlled by the leader. While the interest rate is determined using client-in-individual data.
• APR may be more favorable if you are planning on staying in your home longer term due to APR assumption over the entire term. While the Interest rate may be more favorable if you aren't planning on staying in your home longer term due to break even point for fees. 
• Lower APR often translates to a power total loan cost, though the monthly payments may be higher. A lower rate often translates to lower monthly payments, though the total loan may still be more expensive. 

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Working capital Vs Fixed capital | Difference | Comparison

The key difference between working capital and fixed capital is that Working capital is necessary to fund the company day to day operations. While fixed capital is capital invested by the corporation in acquiring fixed assets essential for the operation of the business. Let us discuss some more differences between Working Capital Vs Fixed Capital with the help of the comparison given below.

What is Fixed capital?

The money or cash employed in a firm to acquire fixed assets is referred to as fixed capital. It is a long-term investment that will benefit the company in the long run. Fixed capital is used to purchase long-term assets like buildings, office space, machinery, and transportation. It is critical to the success of any organization since it helps the firm to increase production, improve service quality and expand its operations. Fixed assets include tangible assets like cars, machinery, equipment, and even rented office space. 

What is Working capital?

Working capital is the money that a company needs to conduct its day-to-day operations. It is capitally invested in a company's present assets. It is an estimated fund available to run the firm, given as a figure that results from deducting current obligations from current assets. Current assets are one that can be liquidated within a year, current assets include cash on hand, debts, and inventory. 

Working capital Vs Fixed capital | Difference between working capital and fixed capital

• Working capital refers to the funds required to run a firm on a daily basis. While Fixed capital is the portion of an organization to run a firm on a daily basis.
• Working capital investments, on the other hand, can be swiftly transformed into cash. Fixed capital is often illiquid since it cannot be converted to cash rapidly.
• The working capital of the corporation, on the other hand, is made up of short-term assets and liabilities. Fixed capital investments are long-term investments that will remain in the firm for more than one accounting period.
• Fixed capital is utilized to acquire noncurrent assets for the organization whereas working capital is used for short-term financing. 
• Fixed capital is utilized to purchase the company's noncurrent assets whereas working capital is used for short-term financing.
• Working capital serves a range of functions, Fixed capital supports the entity's strategic objective which includes long-term business planning.
• Current assets and liabilities comprise working capital. Fixed capital investments are long-term assets that will remain in the company for longer than one accounting period.
• Working capital refers to the funds required to run a firm on a daily basis. While fixed capital is part of a company's total capital that is dedicated to long-term investments.

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Arbitrage Funds Vs Fixed Deposits | Difference | Comparison

The importance of investing and saving for a rainy day cannot be overstated. While the future remains uncertain, people can only do so much by making sure they save and invest wisely. There are many different forms of investment, ranging from long-term to short-term, dangerous to less risky. The sort of investment chosen by an investor is solely determined by how long he can wait to repay his investment amount and the level of risk involved. Some of the most frequent investing alternatives include arbitrage funds and fixed deposits. Let us discuss some more differences between Arbitrage Funds Vs Fixed Deposits with the help of the comparison given below.

What are Arbitrage funds?

Arbitrage funds profit on differences in equity share prices between present and future markets. To maximize profits on these discrepancies, the fund manager will engage in simultaneous buy and sell operations. It entails purchasing equities on the open market and selling them for futures or derivatives at a higher price. This needs constant monitoring, but good trades result in large rewards with little risk. The fund managers are aware of stock price fluctuations across exchanges. They attempt to acquire stocks at cheap prices and sell them at higher prices. This allows them to create returns by purchasing a lower cost and selling at a higher cost. 

What is a fixed deposit?

The investments sometimes known as time deposits, give a greater rate of return to their owners until they mature. They are available at any bank, credit union, or charity shop. Because there is a capital shortage, interest rates have been hiked to reflect this. Furthermore, the maturity date might range from one week to five years in the future, nevertheless, they cannot be redeemed before that time. Investors, on the other hand, are not permitted to withdraw their funds or terminate the transaction without incurring potentially severe penalties. 

Arbitrage funds Vs Fixed deposits | Difference between arbitrage and fixed deposits

• Arbitrage funds are a form of equity-focused mutual fund that can help conservative investors profit from volatile market situations. While Investments in fixed deposits earn a higher interest rate during the deposit up to its maturity date. Until then, there will be no danger to the investor's initial funds.
• Arbitrage funds often have greater liquidity. The amount that may be taken from a fixed deposit is quite little.
• Funds that specialize in arbitrage can have exceptional rates of return. Fixed deposit interest rates are low.
• There are a number of dangers associated with arbitrage funds, including high expense ratios because of the large number of trades needed and unreliability because of the fund's speculative returns. One possible drawback of fixed deposits is that investors may lose interest or be charged if they withdraw their money before the term of the deposit has expired.

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4. Difference Between APR and Rate

Term deposit Vs GIC | Difference | Comparison

The options that both program offers are what set a term deposit apart from a GIC, or guaranteed investment certificate. Term deposits only provide the two options of short-term and long-term deposits. The guaranteed investment certificate, on the other hand, provides options like flexible GIC, GIC linked to the market, etc. Let us discuss some more differences between Term Deposit Vs GIC with the help of the comparison given below.

What is a Term deposit?

Among the available investment options is a term deposit. A term deposit as the name suggests is a deposit made at a specific financial institution that, after a predetermined amount of time, returns the money to us with an additional rate of interest. It is regarded as one of the safest investment options. In some nations, a term deposit is also referred to as a time deposit. It is a non-negotiable form of investment. It is not possible to transfer the deposit made at the specific financial institution.

Related article: Difference between LIC and GIC

What is GIC?

A contract that covers any risk save the danger of death is known as general insurance. It's also known as property and casualty insurance or nonlife insurance. The purpose of insurance is to protect ourselves and our possessions, such as our home, automobile, and outer assets from hazards like fire, theft, flood, storm, accident, and earthquake. There are contracts known as indemnity agreements where the insurer promises to reimburse the insured for any losses. Therefore, regardless of the level of policy coverage, the insurance company will pay the insured for their loss. They must be renewed each year because they typically last one year.

Term deposit Vs GIC | Difference | Comparison

• A time deposit is another name for a term deposit. On the other hand, A GIC is a guaranteed investment certificate.
• One can not withdraw the money once one opts for a guaranteed investment certificate. While in, on the other hand, one can withdraw the money at any time in a term deposit. However, one must pay the penalty for doing so.
• The maturity of the term deposit is less. On the other hand, the guaranteed investment certificate has a longer maturity.
• The rate of interest is less for a term deposit. On the other hand, the rate of interest is more for a guaranteed investment certificate.
• The term deposit's lock-in period is longer. It is 30 to 364 days. O the other hand, the lock-in period of a guaranteed investment certificate is more. It is one to five years.
• The rate structure in a term deposit is quite different from the rate structure of a guaranteed investment certificate.
• When a recipient opts for a term deposit, he or she is left with only two options, they are short-term deposit and long-term deposit. On the other hand, the recipient is offered several choices when they opt for a guaranteed investment certificate. There are a variety of options available, such as flexible GICs and cashable GICs.

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1. Arbitrage Funds Vs Fixed Deposits

Paypal Vs Venmo | Difference | Comparison

Paypal and Venmo are two popular digital wallets that are used to easily and securely transfer money between member accounts. As the parent company of Venmo, PayPal has long been the leader in digital payments. But what's the difference between the two services? And which is better for you?  Let us discuss some more Paypal Vs Venmo with the help of the comparison given below.

What is Venmo?

Venmo is a free payment service and app that connects to users' bank accounts and credit or debit cards and allows them to send and receive funds from contracts or friends. Paypal owns the app, which is currently only available to users in the united states. 

What is Paypal?

Paypal was one of the first payment services and digital wallets to dominate the cash app market in recent years. Users can use the payment service to link their bank accounts and credit or debit cards to their accounts and send and receive payments on mobile devices. Furthermore, PayPal is expanding its product and service offering to businesses and consumers.

Paypal Vs Venmo | Difference between Paypal and Venmo:

• Platforms of PayPal are the web, smartphone, online shopping checkout, and in-store checkout. While platforms Venmo is mostly smartphone with limited web, online shopping, and in-store abilities. 
• The payment method of Paypal is a bank account, debit card, credit card, or PayPal balance. While the payment method of Venmo is a bank account, debit card, credit card, or Venmo balance.
• Paypal free from bank account 2.9% plus 30 cents if paid with a debit or credit card. while Venmo is free from a bank account or debit card, 3% if paid with a credit card.
• Paypal is free for 3 to 5-day transfers, and 1.75% for instant transfers. Venmo is free for 1 to 3-day transfers, and 1.75% for instant transfers.
• Paypal up to $60,000 including $10,000 in a single transaction. Venmo $6,999.99 for all transactions during the last 7 days.
• Paypal can be used in more than 200 countries, with 25 currencies. Venmo is for US users only. 
  
• Paypal transaction fees apply, including internal payment and currency conversion costs. In Venmo, fees apply when adding funds by credit card or check.
  

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Upwork Vs Toptal | Difference | Comparison

Software specialists and freelance developers are always in demand. Due to this, businesses search for the top freelance websites to continually find qualified talent. Three of the most reputable and sought-after freelance sites for finding developers are Toptal and Upwork. In order to assist you in selecting the best alternative for your business, we will compare Upwork vs Toptal in this post.  Let us discuss some more Upwork Vs Toptal with the help of the comparison given below.

Learn more about Fiverr Vs Freelancer

What is Upwork?

Upwork is a platform that was created from the merger of two major players: Elance and Desk. Elance was originally created in 1998, odesk in 2003. In 2013, the two merged to become elance desks. And rebranded in 2015 to Upwork. The name change is intended to highlight the fact that Upwork offers equal services to customers and independent contractors, with the goal of increasing market share. With more than 18 million registered freelancers and 5 million clients, Upwork is now regarded as one of the largest freelancing platforms out there. 

What is Toptal?

The freelancers in Toptal's portfolio are extremely brilliant individuals from all around the world. Toptal is chossy in who it allows access to its platform, and there is an application procedure before you can create a Toptal account and begin employing people. Toptal is known for its incredibly reliable talent pool. Their website adamantly states that it is providing specialists in everything from project managers to coders. 

Upwork Vs Toptal | Difference between Upwork and Toptal:

• Upwork is cost effective freelancer with the widest variety of skill sets and specialties. While Toptal is an elite talent in several categories: developers, designers, finance experts, and project/product managers.
• Upwork is good for short-term projects and tasks. While Toptal is long-term or specialty projects.
• Upwork is all levels and kinds of developers, designers, and engineers. Many specialty/niche skills. While Toptal is an elite software developer, designer, finance expert, product manager, and project manager. 
• Upwork, you must vet yourself, but some profiles earn talent badges for good reviews and feedback. While Toptal in-depth 5-week screening process. Only the top 3% are accepted. Toptal matches you with talent.
• Most complaints are about upworked poor customer support that does not get involve users' problems.
•  Upwork is no risk trial period. Work with talent first before deciding to proceed. While Toptal is a 14-day risk-free trial. Only billed if you are satisfied.
• Upwork has a superficial algorithm-driven selection process that does not eliminate crooks and underqualified applicants. While Toptal candidates go through an excruciating vetting process that guarantees only top-quality workers. Whi;e Toptal supports both candidates and hiring companies at every step of the process providing feedback and necessary information.
• Supported devices of Upwork are Windows, Linux, Android, and IOs. While the supported device is in Toptal Windows and MAC, no mobile support.

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Difference between LIC and GIC

The term insurance refers to a contract wherein, in exchange for the payment of a premium, the insurer agrees to provide compensation for any loss, damage, or death caused to the insured.  General insurance and life insurance are the two categories of contract. Life insurance corporation of India (LIC) is an Indian state-owned insurance group and investment company that offers a variety of life insurance products and services. General insurance corporation of India (GIC) is an Indian state-owned insurance company and the largest general insurance company in India. GIC offers a range of insurance products, including fire, motor, marine, liability, and miscellaneous insurance. 

Life insurance is an insurance policy that protects the policyholder against the danger of dying. General insurance, on the other hand, is a type of insurance policy that covers any risk outside a person's lifetime risk. Let us discuss some more Differences between LIC and GIC with the help of the comparison given below.

Related article: Term deposit Vs GIC

What is LIC?

The term Life insurance refers to a form of insurance that protects against the danger of death and guarantees compensation by disbursing the stipulated amount upon the insured passing or after the defined time. In life insurance, the sum is due when an uncertain event occurs. Additionally, there are other plans in which the policy amount is paid at maturity. These are long-term contracts that call for premium payments all the way up until they mature, at which point the sum insured is paid. 

What is GIC?

A contract that covers any risk save the danger of death is known as general insurance. Sometimes referred to as nonlife insurance or property and casualty insurance. The purpose of insurance is to protect ourselves and our possessions, such as our home, automobile, and outer assets from hazards like fire, theft, flood, storm, accident, and earthquake. There are indemnity contracts, in which the insurer guarantees to compensate the insured for any losses. Therefore, the insurance company will compensate the insured for their loss regardless of the policy coverage level. Since they are typically one year in length, they must be renewed annually.

Difference between LIC and GIC:

• LIC is an insurance contract, which covers the life risk of the person insured. While GIC is an insurance that is not covered under life insurance.
• LIC is a premium that has to be paid over the year. While the GIC premium has to be paid in a lump sum.
• LIC is a form of investment. while GIC  is a contract of indemnity.
• LIC is a long-term contract. GIC is a short-term contract.
• LIC insurable amount is paid either on the occurrence of the event or on maturity. While GIC is loss is reimbursed, or liability will be repaid on the occurrence of an uncertain event. 
• LIC must be present at the time of the contract. GIC must be present, at the time of contract and loss both.
• LIC can be done for any value based on the premium policy. While GIC is the amount payable under life insurance and is confined to the actual loss suffered. 
• LIC insurance gives you the insurance of life risk while GIC does not cover life risk and includes various types of insurance like motor, home, and property insurance.
• In LIC, the insurable interest must be present at the time of the contract, but in GIC, presence is significant at both periods. Loss and contract duration.
• GIC lacks the saving component, whereas LIC does.
• In LIC, one can get the sum when some mishappening occurs or at the maturity of the term, but in GIC, one can avail of the benefit only when the uncertain event occurs. 

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1. Difference between insurance and reinsurance
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Stock Dividend Vs Stock Split | Difference | Comparison

Stock dividends and stock splits are two different corporate actions that can affect the value of company stock. When the bank gives its dividend to the customers in cash, it is called a cash dividend. When the bank gives the dividend through additional stock, it is called a stock dividend. The stock split means splitting existing shares to create more shares. Both terms are nothing alike. Let us discuss some more Differences between Stock dividends and Stock split with the help of the comparison given below. 

What is a stock dividend?

In place of cash, stock dividends are distributed to shareholders. Simply put, stocks are being given in instead of cash. Companies now frequently give their devoted shareholders more shares. There are a lot of important calculations going on here. The stock price will decrease if an excessive number of dividends are issued and allowed to continue. Inflation will result from a sharp decrease in stock values. 

What is a Stock split?

The additional stocks are divided into several portions and delivered to the small shop in a stock split. The nation's capital is unaltered. If the business lacks the funds to make the payment, this is a sensible economic option. It enables the corporation to allot the share to more people. This fosters a strong stakeholder base and financial stability. The business is acting economically by doing this. It allows a huge number of users to access the share.

Stock dividend Vs Stock Split | Difference between Stock dividend and stock split:

• Under the stock dividends, the company issues additional shares to the shareholders in a certain proportion for free. A stock split is nothing but a division or splitting of the face value of a company's shares. In this case, the company divides its share into multiple shares. 
• Stock dividend is giving the portion of profit to the shareholders with the mean of additional stocks. A stock split is subdividing the existing stocks. On the other hand, if there is a stock split, there will be no change in the company's share capital or reserves. When they need to tome down their high priced share they opt for the stock split.
• When the company does not have a sufficient amount of hard cash to distribute the profit they go for the stock dividend option. When the company wants to increase the liquidity of shares they declare a stock split. 
• Stock dividend causes no change in the face value. Face value decreases in case of the occurrence of the stock split.
• On declaring stock dividends, there is no change in the face value of shares, While in a stock split the face value of share decreases. 
• In a stock dividend, the stock price is adjusted as per the additional number of shares that the company issues. As against, in the case of the stock split, the share price gets halved in the ratio.
• Stock dividend increases the share capital of the company on one hand and on the other hand decreases reserves. On the other hand, there won't be any changes to the company's share capital or reserves if there is a stock split.
• Stock dividends require journal entries. While Stock split does not require journal entries.

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