Stock Dividends Are Always Tax-Free to the Recipient Shareholder

question 98

True/False

Stock dividends are always tax-free to the recipient shareholder.

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Definitions:

International Financial System

The global network of government institutions, financial markets, currencies, and regulations that support international trade and investment.

Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold.

Fixed Rate

An interest rate that remains constant over the duration of a loan or investment, as opposed to a variable or floating rate.

Money Supply

The entire pool of financial assets existing in an economy at a specific timeframe.