Simple English definitions for legal terms
Read a random definition: inventory fee
Definition: A bond dividend is a type of dividend in which a shareholder receives a bond instead of cash or additional shares.
Example: If a company declares a bond dividend, a shareholder may receive a bond that can be redeemed for cash at a later date instead of receiving a cash payment or additional shares.
This example illustrates how a bond dividend is a way for a company to distribute earnings or profits to its shareholders in a non-traditional way. Instead of receiving cash or additional shares, shareholders receive a bond that can be redeemed for cash at a later date.