A stock dividend results in an increase in paid-in capital in the accounts.

Name: A stock dividend results in an increase in paid-in capital in the accounts.
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A stock dividend is essentially where a company issues additional shares of its stock to its shareholders as a form of dividend payment. However, since no cash is being paid out, the stock dividend increases the number of shares outstanding while also increasing the amount of paid-in capital on the balance sheet.

A Stock Dividend Results in an Increase in Paid-In Capital