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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Stock Dividend

Definition:

Some stocks pay out dividends, and you can use that cash however you want.

Stock dividends are dividends paid out in the form of—wait for it—stocks. One problem: Since the company has created more stock, you get to deal with dilution, meaning that every individual share is a smaller slice of the company pie.