Stock Dividends and Stock Splits Have the Following Effects on Retained

question 3

Short Answer

Stock dividends and stock splits have the following effects on retained earnings:

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Definitions:

Marketability

The ease with which an asset or service can be sold or bought in the market, often because of demand, availability, or regulatory conditions.

Instrument

An instrument is a formal legal document, such as a contract, will, or security, that gives evidence or details of a transaction or legal act.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money to the bearer on demand or at a set time.

Substitute

An alternative option or something that replaces another.