Stock Dividends and Stock Splits Both Increase the Number of Shares

question 121

True/False

Stock dividends and stock splits both increase the number of shares but only stock dividends increase the value of the company.

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Definitions:

Not Rival

Refers to a good's characteristic where one person's consumption does not reduce the availability of the good for consumption by others.

Common Resources

Natural or man-made resources that are not owned by anyone, are available for use by more than one person, and can be depleted.

Public Good

A product that one individual can consume without reducing its availability to another individual and from which no one is excluded.

Lighthouse

A tall structure with a powerful light at the top, located near or on the shore, providing navigation guidance to maritime pilots at sea or on inland waterways.