A corporation may declare stock dividends when there is not enough cash to pay a cash dividend.

Name: A corporation may declare stock dividends when there is not enough cash to pay a cash dividend.
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A corporation can choose to issue stock dividends as a way to distribute wealth to shareholders when there isn't enough cash available to pay a cash dividend. This is because stock dividends do not require the company to use cash, but rather involve distributing additional shares of stock to shareholders.

A Corporation May Declare Stock Dividends When There Is Not