Which of the Following Is the Best Definition of a Stock

question 95

Multiple Choice

Which of the following is the best definition of a stock split?

• A) Stocks attract particular groups based on dividend yield and the resulting tax effects.
• B) Price range between highest and lowest prices at which a stock is traded.
• C) A firm's long-term desired dividend-to-earnings ratio.
• D) Common stock on which dividends and capital gains are repackaged and sold separately.
• E) An increase in a firm's shares outstanding without any change in owner's equity.

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Definitions:

Desire

A strong feeling of wanting to have something or wishing for something to happen.

Generalization

The process or method of formulating general concepts by abstracting common properties of specific instances.

Specific Conclusion

A definite and detailed end statement in an argument or presentation, drawn from the information and analysis provided beforehand.

Deduction

The process of reasoning from general principles to specific conclusions, or the elimination of possible causes until only one remains.