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 creator of the AccountingCoach Pro which has been praised for its ability to simplify accounting in a way that anybody can understand.
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