5 Questions
What is a stock dividend?
A distribution of additional shares of stock to some shareholders of record
What is a stock split?
An increase in the number of shares of stock outstanding, without any change in the par value of the shares
What are stock rights?
The right to purchase additional shares of stock at a specified price
What are taxable distributions?
Distributions that are made out of the corporation's earnings and profits
Are non-taxable distributions taxed to the shareholders?
No, regardless of the holding period of the shares
Study Notes
"Test Your Knowledge on Stock Dividends and Stock Splits - Learn the Differences and Benefits of These Corporate Actions!" Take this quiz to understand the concepts of stock dividends and stock splits, and how they can impact your investment portfolio. Identify the key differences between these two corporate actions and explore their advantages for shareholders. Perfect for investors looking to expand their knowledge on stock market fundamentals.
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