A corporation's distribution of its own shares to its shareholders without receiving any payment in return is a:

Question

Quizplus · Accepted Answer

A distribution of a corporation's own shares to its shareholders without payment is called a share dividend. This is a distribution of additional shares in proportion to the number of shares already held by each shareholder. Share dividends are used to reward shareholders and encourage long-term investment in the company.

A Corporation's Distribution of Its Own Shares to Its Shareholders