Stock Dividend

Posted in Finance, Accounting and Economics Terms, Total Reads: 1503

Definition: Stock Dividend

When the dividend is paid out in the form of additional shares instead of cash dividend then the dividend is known as Stock Dividend.

It is done to maintain the liquidity of the company. When cash dividend is paid then the company’s cash balance is reduced which is a liquid asset.

Browse the definition and meaning of more terms similar to Stock Dividend. The Management Dictionary covers over 7000 business concepts from 6 categories.

Search & Explore : Management Dictionary

Share this Page on:
Facebook ShareTweetShare on G+Share on Linkedin