A Corporation's Distribution of Its Own Shares to Its Shareholders

question 21

Multiple Choice

A corporation's distribution of its own shares to its shareholders without receiving any payment in return is a:

• A) Premium on shares.
• B) Preferred share.
• C) Discount on shares.
• D) Share subscription.
• E) Share dividend.

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Definitions:

Funds

Financial resources, especially those available for a specific purpose or required to cover a specific debt or purchase.

Federal Government

The national government of a federal state, which shares sovereignty with its provinces, states, or other political subdivisions.

Appoints

The act of designating someone to a position or role, often used within legal, organizational, or governmental contexts.

Judges

Persons appointed to decide cases in a court of law, interpret laws, and administer justice.