As a Minimum, How Large in Relation to Total Outstanding

question 9

Multiple Choice

As a minimum, how large in relation to total outstanding shares may a stock distribution be before it should be accounted for as a large stock dividend instead of as a small stock dividend?

• A) no less than 2% to 5%
• B) no less than 10% to 15%
• C) no less than 20% to 25%
• D) no less than 45% to 50%

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Definitions:

False Assumption

An incorrect belief or premise that may lead to erroneous conclusions or actions.

Same Characteristics

Qualities, attributes, or features that are identical or very similar between entities.

Wealth Inequity

The unequal distribution of assets, wealth, and income among individuals or groups within a society, leading to economic disparity.

Prejudice

A preconceived opinion or judgment about someone or something that is not based on reason or actual experience.