A payment made by the ﬁrm to its owners in the form of new shares of stock, rather than cash, is called a(n) _______________ dividend.

Question

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A payment made by the firm to its owners in the form of new shares of stock is called a stock dividend. Normal dividends are paid in cash, special dividends are one-time payments, extra dividends are in addition to regular dividends, and liquidating dividends are paid when a company is closing down.

A Payment Made by the ﬁRm to Its Owners in the Form