In a Stock Split, Only the Content of Contributed Capital

question 98

True/False

In a stock split, only the content of contributed capital is changed, whereas in a stock dividend the amount of contributed capital is changed.

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Definitions:

Tax Payer

An individual or entity that is obligated to make contributions to government funds through the payment of taxes.

Bargaining Power

The capacity of one party to influence the outcome of negotiations by controlling resources or circumstances that are desirable to the other party.

NLRB

The National Labor Relations Board, an independent federal agency in the United States that enforces labor laws in relation to collective bargaining and unfair labor practices.

Strikes

Work stoppages initiated by employees as a protest against their employer, often to demand better pay, benefits, or working conditions.