If a Corporation Issues Additional Shares of Its Own Stock

question 88

Multiple Choice

If a corporation issues additional shares of its own stock to the stockholders on a proportional ownership basis, these are known as a

• A) liquidating dividend.
• B) dividend payable.
• C) cash dividend.
• D) stock dividend.

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Definitions:

Chilling Effect

A situation where the fear of potential legal or economic repercussions results in hindered or silenced expression, often in the context of free speech, journalism, or public participation.

Bargaining Impasses

Occurs when the parties involved in negotiation, particularly in labor negotiations, are unable to reach an agreement despite prolonged discussions.

Dispute Resolution

The process of resolving a dispute or conflict between parties through negotiation, mediation, arbitration, or legal actions.

Third Party Dispute

A conflict involving an external entity that is not a direct party to the initial issue or disagreement, often requiring resolution through mediation or arbitration.