Explain Some Possible Reasons a Company May Declare a Stock

question 28

Essay

Explain some possible reasons a company may declare a stock dividend instead of a cash dividend.

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Definitions:

Bilateral

Relating to or involving two sides, parties, or countries, often used to describe agreements or communications.

Unilateral

Involving only one side or party, often referring to agreements or actions taken independently by one entity without the need for consent or participation of another.

Contract Law

A branch of legal studies focusing on the creation, interpretation, and enforcement of agreements between parties with mutual obligations.

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, or artistic fields.