Examlex
Which of the following statements is correct?
Stock Dividend
A disbursement by a company to its stockholders, consisting of extra shares instead of monetary funds.
Cash Dividend
A cash dividend refers to the distribution of profits by a corporation to its shareholders in the form of cash.
Stock Split
A corporate action in which a company divides its existing shares into multiple ones to boost the liquidity of the shares, though the company's market capitalization remains unchanged.
Average Investor
A term referring to a hypothetical investor who represents the median market participant, with typical financial goals and risk tolerance.
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