What is Stock Dividend ?

When the Dividend is paid in Stock or Share to the share holders of the company then it is called Stock dividend.

The amount of Stock dividend is transffered to the share holders' BO Account directly within specific time.

Explanation: Suppose A & B co. is a public limited company, Board of Directors of whom have Proposed 20 % stock dividend for the share holders, and the share holders at the AGM has approved 20 % stock dividend. If so then it is called stock dividend.