A Small Stock Dividend Is Defined as

question 16

Multiple Choice

A small stock dividend is defined as

• A) less than 30% but greater than 25% of the corporation's issued stock.
• B) between 50% and 100% of the corporation's issued stock.
• C) more than 30% of the corporation's issued stock.
• D) less than 20-25% of the corporation's issued stock.

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Definitions:

Cash Dividend

A payment made by a company out of its profits to its shareholders in cash, typically on a regular basis.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the issuing company, reducing the amount of stock on the open market.

Common Stock

Equity shares that represent a form of corporate ownership, entitling the shareholder to a share of the company's success through dividends and or capital appreciation.

Stock Split

A corporate action that increases the number of shares in a company, reducing the price per share without changing the market capitalization.