What is a Stock Dividend?
In today’s short [What is a Stock Dividend?] video 🎥, we’re breaking down the concept of stock dividends.
So, what exactly is a stock dividend? Well, it’s a payment made by a company to its shareholders. When you buy stocks of a company, you become a part-owner and are entitled to a share of its profits.
Instead of receiving these profits in cash, a company may choose to distribute them among its shareholders in the form of stock dividends. This means that you will receive more stocks, which can increase the value of your investment in the long run.
So, why would a company choose to give out stock dividends instead of cash? It can be seen as a way to reward shareholders while also conserving their cash for other investments.
In summary, stock dividends are a way for shareholders to receive a share of a company’s profits in the form of additional stocks. We hope this video has helped you understand this concept better. Don’t forget to like, share, and subscribe for more financial tips. See you in the next video!
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