If a corporation issues additional shares of its own stock to the stockholders on a proportional ownership basis, these are known as a

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Issuing additional shares of its own stock to the stockholders on a proportional ownership basis is called a stock dividend. A cash dividend is a payment of cash to stockholders, while a dividend payable is the liability of the corporation for a declared but unpaid dividend. A liquidating dividend is a distribution of all or part of a corporation's assets to its stockholders.

If a Corporation Issues Additional Shares of Its Own Stock