Technical Analysis Glossary Stock dividend cash shares

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Technical Analysis Glossary: Stock dividend

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Term:

Stock dividend

Definition:

Payment of a corporate dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company, or it may be shares in a subsidiary being spun off to shareholders. Stock dividends are often used to conserve cash needed to operate the business. Unlike a cash dividend, stock dividends are not taxed until sold.

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7/29/2010 - SV1