Which of the Following Is an Exchange of Existing Shares

question 90

Multiple Choice

Which of the following is an exchange of existing shares for a different (usually larger) number of "new shares," with proportionately different par and market values?

• A) Stock dividend
• B) Stock split
• C) Payment date
• D) Ex-dividend

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, resulting in a market balance.

Quantity

The quantity of a substance or item that is available or manufactured.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity can dictate the market price.

Government Regulation

Laws and rules established by governments to control the behavior of businesses and individuals to achieve policy objectives.