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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Stock Dividend


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.