A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a:

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Carson Ellison

Business

20 January, 07:44

A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a:

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Kendrick Shields · Answer 1

stock dividend -

Explanation:

stock dividend -

it is taken as alternative source of supply of dividend to stock holder when there is short supply of cash in the company. Therefore company's paid additional share in place of liquid cash to customer.

Basically for every quarter it is liability of the company's to pay dividend to the customer for their stock by sending some pay check but if there is shot supply of cash then company pay you additional share to cover up short supply of cash