A common stock dividend is the dividend paid to common stock owners from the profits of the company. Like other dividends, the payout is in the form of cash or other like stock. The law may regulate the size of the common stock dividend particularly when the payout is a cash distribution tantamount to a liquidation. Such cash dividends may serve the intent of defrauding creditors.
Read more about Common Stock Dividend: Cash Dividend, Stock Dividend
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