stock dividend


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Related to stock dividend: stock split, Cash dividend

Stock dividend

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.

Stock Dividend

A dividend that is paid in stock or bonds rather than cash. A stock dividend may be declared when the company is cash poor and cannot afford a dividend otherwise. They are generally not considered desirable because one must pay capital gains tax on stock dividends, even though there is no cash gain for the shareholder. It is also called a scrip dividend. See also: Payment-in-kind bond.

stock dividend

A dividend made up of shares of the paying firm's stock. A stock dividend is often used in place of or in addition to a cash dividend if the firm wishes to conserve cash. Unlike a cash dividend, a stock dividend is usually not taxable to the shareholder when it is received, but rather when it is sold. Stockholders who are supposed to receive a fractional share will often receive a check for the amount equal to the market value of the fractional share. Payment of a stock dividend is indicated in stock transaction tables in newspapers by the symbols b and t. See also scrip dividend.

stock dividend

a DIVIDEND payment whereby a SHAREHOLDER is paid a dividend in the form of additional SHARES or STOCKS in the company rather than in the form of cash. See also STOCK SPLITS.

stock dividend

a DIVIDEND payment whereby a SHAREHOLDER is paid a dividend in the form of additional SHARES or STOCKS in the company rather than in cash. See also STOCK SPLITS.

Stock Dividend

Additional shares of stock distributed to shareholders at no cost. The number of shares received are a percentage of the shares owned. The basis of the original shares is generally apportioned equally to the total shares owned after the distribution.
References in periodicals archive ?
Moreover, the ruling quotes Tax Court Judge Hamblen's concurring opinion in Frontier, which notes that "[i]f a discretionary act of the board of directors of a shareholder corporation to redeem the stock dividends becomes a routine matter, it might .
Of note is that the ruling neither cited nor discussed the prior rulings or case law addressing stock dividends that take place when shareholders have a pre-existing outstanding right to require the redemption of their stock both before and after the distribution.
Under the terms of the stock dividend resolutions, the U.
A German stock dividend is a relatively easy way to obtain a German cash refund and corresponding reduction in a multinational group's effective German tax rate.
The stock dividend and higher cash dividend reflect our optimism about the future earning power of the company," said Lawrence A.
ADS holders were entitled to receive a stock dividend only.
The stock dividend means that a shareholder will receive an additional common share for each common share owned on the record date.
CPO holders who do not wish to receive the CPO stock dividend can elect to receive a cash payment of US$0.
Heartland Express said that the stock dividend was declared in order to provide additional liquidity for the Company's shareholders.
AUSTIN, Texas -- Tensleep Corporation (OTC:TENS) ("Tensleep"), a business specializing in the research and development and the acquisition of intellectual property for use in the design and development of electronic products, announced that its board of directors has changed the record date on the stock dividend payable in the common stock of Tensleep Wireless Corporation ("Wireless") to its stockholders from March 31, 2006 to April 5, 2006, but will be payable April 15, 2006.
AUSTIN, Texas -- Tensleep Corporation (OTC:TENS)("Tensleep"), a business specializing in the research and development and the acquisition of intellectual property, for use in the design and development of electronic products, announced that its board of directors has authorized a stock dividend payable in the common stock of Tensleep Wireless Corporation ("Wireless") to its stockholders as of March 31, 2006, payable April 15, 2006 on the basis of one share of Wireless common stock for each 10 shares of Tensleep stock to shareholders holding 100 or more shares on March 31, 2006 (the "Stock Dividend").