What is a dividend?
A cash dividend is a distribution of a portion of a corporation’s earnings to its stockholders.
A stock dividend (as opposed to a cash dividend) is a distribution of more shares of a corporation’s own stock to its stockholders.
Learn more about Stockholders’ Equity.
About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.He is the author of the 2010 Master Accounting Download Package which has been praised for it's ability to simplify accounting in a way that anybody can understand.
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Could you say more about why a stock distribution might be made? Isn’t the effect of these two types of dividends opposite from the point of view of the value to shareholders unless the stock dividend maintains the shareholders’ pro rata percent ownership in the corporation?
To my own view i think dividenedn is a certain amount of money paid for the share holder.
can you define reserve fund and sinking fund.