Stock Dividends
/ˈstɑk ˈdɪvɪˌdɛndz/
Definitions
- (n.) Dividends paid to shareholders in the form of additional shares of the corporation’s stock rather than cash.
The company declared stock dividends to retain cash while rewarding its shareholders.
Forms
- stock dividend
Related terms
See also
Commentary
Stock dividends increase the number of shares owned by shareholders but do not affect the overall value of ownership immediately; they are distinct from cash dividends and require careful drafting to specify terms of issuance.
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