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Investing Glossary:
Stock dividend
Copyright 2010,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
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| Payment of a corporate Dividend in the form of Stock rather than cash. The Stock dividend may be additional Shares in the company, or it may be shares in a Subsidiary being spun off to shareholders. Stock dividends are often used to conserve Cash needed to operate the business. Unlike a cash dividend, stock dividends are not taxed until sold.
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