Question

Why company issue stock devidends​

Answer 1

Explanation:

A corporation might declare a stock dividend instead of a cash dividend in order to

1) increase the number of shares of stock outstanding . 2) move some of its retained earnings to paid in capital, 3) minimize distributing the corporation's cash to it's stockholders.

Answer 2

A corporation might declare a stock dividend instead of a cash dividend in order to 1) increase the number of shares of stock outstanding, 2) move some of its retained earnings to paid-in capital, and 3) minimize distributing the corporation's cash to its stockholders.