Stocks and Shares-Dividend

Introduction 

The investments are made in the organization with the help of various stocks and shares, the organizational functions in the development of their own and the society.  In stock dividends, the organization gives the provision of making the payment by the shares rather than cash. The shareholders can make the transaction with the available shares with them. This makes the advantages for the shareholders to be the martyr of the organization without affecting the company’s balance of cash. In this process the earning over the shares gets diluted and the stock distribution is generally made for the fraction paid for the individual share.  Main body

Stocks and shares

• A dividend is considered to be the distribution of the earnings of a company. The distribution can be done among the shareholders or a particular class. It has been paid in the form of a “dividend check”. On the other hand, it can be said that they can also be paid in additional shares of stock. 
• The alternative method for this is to put it in the form of “additional shares of stock”. It is tough to identify whether the stock is better or shares and which is the best portion of the earnings of a company. The relationship between market value and dividends has been shown in this part.  
• Both the terms “stock” and “share” are basic terms and the investors of a company have to understand these terms for the journey of the stock market. The important aspect of this journey is that the understanding of these two aspects is the most necessary part of this.
• Stock leads to financial securities and it also represents part-ownership in one or more companies. On the other hand, shares are the smallest denomination of the stock of a company. Therefore it can be said that every unit of stock is a share, and every share of stock is equal to the ownership of the company. 
• Share refers to the single unit owner of a company whereas stock is part owner of one or more companies. The stock owners can choose various stocks of different values but the shareholders can choose different shades of the same value. Therefore the difference between the two terms clears the concept of the two aspects.    

Dividend

• A stock dividend is a dividend of payment to the shareholders that are made in shares instead of cash. A dividend is considered to be the distribution of earnings of a company. It has been normally paid in the form of a check and the check is a dividend check.
• These dividends can also be paid in additional shares of stock. In this field, the alternative method of paying dividends is “in the form of additional shares of stock”. It can help in building tremendous wealth at a time and is the main feature of it. It has a great advantage and it is the power of compounding. 
• It can be noticed that a stock of two days’ business can help to get a dividend payout. Technically speaking one can buy a stock before the market closes and can be entitled to the dividend at the time of opening the market. Dividends can be paid quarterly or annually but some stocks can be payable monthly to the shareholders.
• Several factors can influence the dividend and 2% to 6% is considered to be a good dividend yield. A number of factors can influence whether a stock is a good investment. These have consisted of “real estate investment trusts”, “utilities”, “telecommunications firms”, and energy companies. Therefore the idea can be drawn that dividends can be got from shares and stocks. Different stocks and shares have paid dividends in the market.          

Best shares for Dividend 

The shares dividends are issued by the organization in the market if they have the limited liquid cash reserve in the organization. The organization issued the stock or the shares dividend also to maintain the supply of cash in the organization. The organization acts on both small and large stock dividends for the investors in the organization.  The small stock dividends are those when the shares are issued with less than 25% of the total value of shares before the dividend. In the small stocks’ dividend, the share value in the market area is retained from the earnings made in the capital. Large stock dividends are those when the new shares have a value of more than 25% of the overall value of shares before the dividend. In a large stock dividend, the par value of the shares is transferred from the earnings of the retail into the capital.

Conclusion 

From the above discussion over the stocks and shares, it can be concluded that the stocks and shares dividends are the processes that are used by the organization to maintain the flow of liquid cash in the organization. The organization maintains the liquidity of cash in the organization with the help of shares exchange with the investors of the organization. In the discussion on small stock dividends and larger stocks dividends, the largest stock is considered to be the most profitable for the organization as well as the investors.