A stock dividend is a payment made by a corporation to its shareholders in the form of additional shares rather than cash. This distribution of shares increases the total number of shares outstanding, but it does not alter the overall value of the company or the proportional ownership of shareholders. By issuing stock dividends, companies can reward their investors without depleting cash reserves, making it an attractive option for growth-oriented firms.
congrats on reading the definition of stock dividend. now let's actually learn it.