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What does stock dividend mean?

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stock dividend
Noun
AE

A dividend in the form of a company’s own shares distributed pro rata to its shareholders in the place of or in addition to a cash dividend, achieved by transferring a certain value from the owners’ equity retained earnings account to the paid-in capital accounts (i.e., the capitalization of earnings).

Synonym(s): 
  • bonus issue; capitalization issue.
  • [BE]: scrip issue
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