Stock dividend
Stock dividend is stock that is distributed to stockholders instead of cash or other assets.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Stock dividend. Stock that is distributed to stockholders instead of cash or other assets.
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Stock dividend. Increases the number of shares outstanding but at a slower rate than splits. Current shareholders receive additional shares on some proportional basis. Thus, a holder of 100 shares would receive 5 additional shares at no cost if a 5% stock dividend were declared.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
