At their discretion, the directors may, instead of paying a dividend in cash, declare what is known as a stock dividend.
A dividend may be payable in cash or property or a stock dividend may be made.
It is not absolutely necessary that a company possess treasury stock to declare a stock dividend.
The substance of what he gleaned from Cassidy's newspaper was that those directors had declared a stock dividend of 200 per cent.
The directors declare a cash dividend of 7%, and a stock dividend of 25%.
A stock dividend cannot, however, be declared when it would not be proper to declare a cash dividend.