A payment made by a firm to its owners in the form of new shares of stock is called a _____ dividend.

Question

Quizplus · Accepted Answer

A stock dividend is a payment made by a firm to its owners in the form of new shares of stock, rather than cash. It is a way for the company to distribute earnings or capital to shareholders without reducing cash or assets on the balance sheet. A special dividend is a one-time payment made in addition to regular dividends, an extra dividend is also a one-time payment but is not linked to regular dividends, a normal dividend is a regular payment made by the company to its shareholders, and a liquidating dividend is a payment made when a company is going out of business and is distributing its assets to shareholders.

A Payment Made by a Firm to Its Owners in the Form