A Shareholder Who Receives a Stock Dividend Would

question 116

Multiple Choice

A shareholder who receives a stock dividend would

• A) expect the market price per share to increase.
• B) own more shares.
• C) expect retained earnings to increase.
• D) expect the legal capital of the shares to change.

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Definitions:

Inequality

The unequal distribution of resources, opportunities, and privileges among individuals or groups within a society, leading to disparities in wealth, power, and status.

Wealth Transfer

The movement of assets or capital from one person, sector, or generation to another, often used to describe changes in wealth due to inheritance or estate planning.

Technological Change

The process of innovation and development in technology that affects economies and societies.

Worldwide Trade

The exchange of goods, services, and capital between countries and regions across the globe.