Stock Dividend
/ˈstɒk ˈdɪvɪdɛnd/
Definitions
- (n.) A dividend paid to shareholders in the form of additional shares of stock rather than cash.
The company declared a stock dividend to reward shareholders without reducing cash reserves.
Forms
- stock dividend
- stock dividends
Related terms
See also
Commentary
Stock dividends increase the number of shares held without changing the ownership percentage; important for drafting to specify impact on shares and capital structure.
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