Definitions
In plain terms
A holder may receive a stated number of new shares for each existing share, changing quantity and per-share basis.
Technical
Processing requires entitlement ratio, source and destination securities, dates, election terms, fractional treatment, identifiers, price and share adjustments, and tax or index context.
Scope
A stock dividend is not automatically identical to a stock split despite similar unit effects.
Examples
- A governed calculation records stock dividend with its exact basis, effective time, source, and units.
Common misconceptions
- Stock Dividend does not have one universal treatment without the applicable methodology, event terms, and data context.
Concept relationships
Where this concept is used
Evidence and governance
- Corporate Actions and Events Guide FTSE Russell, London Stock Exchange Group · first party methodology
Supports: preferred label, short definition, technical definition
Limits: Rules are specific to applicable FTSE Russell indices and can contain market, eligibility, tax, and timing exceptions.
- Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract
Supports: variant distinction
Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.
- Reviewed by
- fintech-builder-owner-approved
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- published