Answer / manoj

Companies may decide to distribute stock to shareholders of
record if the company's availability of liquid cash is in
short supply. These distributions are generally acknowledged
in the form of fractions paid per existing share. An example
would be a company issuing a stock dividend of 0.05 shares
for each single share held.

Answer / arcot purna prasad

Stock dividend is the shares offered by the company instead
of dividend to its shareholders. This is one way to retain
dividens with the comapny itself. Investors will get shares
without paying anything extra.

Answer / harshal kamble

Stock dividend is the dividend given to the existing
shareholders in the form of shares instead of cash
dividend, the company do not want to give the cash.

Answer / tarun

A stock dividend is a pro-rata distribution of additional
shares of a company’s stock to owners of the common stock.
A company may opt for stock dividends for a number of
reasons including inadequate cash on hand or a desire to
lower the price of the stock on a per-share basis to prompt
more trading and increase liquidity (i.e., how fast an
investor can turn his holdings into cash). Why does
lowering the price of the stock increase liquidity? On the
whole, people are more likely to buy and sell a $50 stock
than a $5,000 stock; this usually results in a large number
of shares trading hands each day.

Answer / ravi murao

when a company distribute its profit to share holder in financial terms its called a dividend.So dividend is nothing but a profit of the share holder.

Answer / phani

stock dividend mesns dividend given in the form of stock

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