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What are the Reasons or Objectives for Issuing the Stock Dividend?
A stock dividend refers to when shareholders are paid dividends as additional stock by a company. Investors get fresh stocks on the basis of the quantity of current shares that they possess. During a stock dividend, the liabilities and assets of the firm do not change. Due to this reason, the cost of every individual share drops due to a rise in the number of outstanding shares as well as because of a stable market value.

There can be various reasons for issuing a stock dividend. In place of a cash dividend, a stock dividend might be declared in order to reduce the distribution of cash dividends to shareholders. A company might declare this type of dividend in order to reduce the distribution of cash dividends to its shareholders, transfer some of the held back earnings to capital that is paid in or enhance the share amount of pending stocks. At myhomeworkhelp.com, we offer Reasons or Objectives for Issuing the Stock Dividend Assignment Help services that can help you finish your projects on time.

What is the significance?
A stock dividend is what shareholders are liable to receive as additional shares. Since recognition and rewards work a lot in ensuring smooth flow of a company, a stock dividend could also be offered as reward to shareholders. It can be a revered gesture on the part of the management of a company for the shareholders reflecting a token of appreciation.

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