Eisner v. Macomber

Justice Mahlon Pitney delivered the majority opinion: A stock dividend shows that the companys accumulated profits have been capitalized, instead of distributed to the shareholders or retained as surplus available for distribution in money or in kind should opportunity offer. Far from being a realization of profits of the stockholder, it tends rather to postpone such realization, in that the fund represented by the new stock has been transferred from surplus to capital, and no longer is available for actual distribution.

1. explain your understanding of the meaning of that statement.