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A Stock Split Is Similar to a Stock Dividend in That

question 96

True/False

A stock split is similar to a stock dividend in that it results in additional shares of stock outstanding and is nontaxable.


Definitions:

Fractional Shares

Shares of stock that are less than one full share, which can occur through dividend reinvestment plans or stock splits.

Duty Of Care

A legal obligation to avoid acts or omissions that could likely cause harm to others.

Ordinarily Prudent Person

A legal standard that represents how a typical, reasonable person would act in certain circumstances, usually used to determine negligence.

Pac-Man

A classic arcade video game first released in 1980 featuring a character navigating a maze while eating dots and avoiding ghosts.

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