Which of the Following Is the Best Definition of a Stock

question 202

Multiple Choice

Which of the following is the best definition of a stock split?

• A) Stocks attract particular groups based on dividend yield and the resulting tax effects.
• B) Price range between highest and lowest prices at which a stock is traded.
• C) A firm's long-term desired dividend-to-earnings ratio.
• D) Common stock on which dividends and capital gains are repackaged and sold separately.
• E) An increase in a firm's shares outstanding without any change in owner's equity.

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Definitions:

Management Function

The activities undertaken by managers in planning, organizing, leading, and controlling to achieve organizational goals.

Expensive

Referring to something that has a high cost or price, often requiring a considerable amount of money to purchase.

Hygiene Factors

Factors related to the work environment that, while not directly motivating, can lead to dissatisfaction if missing or inadequate; a concept in Herzberg's two-factor theory.

Herzberg

Refers to Frederick Herzberg, a psychologist best known for developing the Motivation-Hygiene Theory, which differentiates between factors that satisfy or dissatisfy employees in the workplace.