When a corporation pays a dividend in the form of additional stock, the dividend is called a
A) cash dividend.
B) stock split.
C) retained earning.
D) stock dividend.
E) stock conversion.

Question

Quizplus · Accepted Answer

When a corporation pays a dividend in the form of additional stock, it is called a stock dividend. This means that instead of distributing cash to shareholders, the company is distributing additional shares of stock to its shareholders. This can sometimes be a way for a company to conserve cash while still rewarding its shareholders.

When a Corporation Pays a Dividend in the Form of Additional