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Explain each Stock dividend pros and cons Pros Cons Not taxable until you sell the shares Provides greater portion of ownership of the company Provides

Explain each Stock dividend pros and cons

Pros Cons
  • Not taxable until you sell the shares
  • Provides greater portion of ownership of the company
  • Provides the option to hold onto the stock or to sell it
  • Riskier, as it's based on stock performance
  • Behavioral risk, as investor must decide when to sell
  • Could be a sign of financial distress

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