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Questions and Answers
What is a stock dividend?
What is a stock dividend?
- A distribution that is not made out of the corporation's earnings and profits
- A decrease in the number of shares of stock outstanding
- The right to purchase additional shares of stock at a specified price
- A distribution of additional shares of stock to some shareholders of record (correct)
What is a stock split?
What is a stock split?
- A distribution of additional shares of stock to some shareholders of record
- An increase in the number of shares of stock outstanding, without any change in the par value of the shares (correct)
- The right to purchase additional shares of stock at a specified price
- A distribution that is not made out of the corporation's earnings and profits
What are stock rights?
What are stock rights?
- The right to purchase additional shares of stock at a specified price (correct)
- A distribution of additional shares of stock to some shareholders of record
- A decrease in the number of shares of stock outstanding
- A distribution that is not made out of the corporation's earnings and profits
What are taxable distributions?
What are taxable distributions?
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Are non-taxable distributions taxed to the shareholders?
Are non-taxable distributions taxed to the shareholders?
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Study Notes
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Description
"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.
