After Years of Banking with Quality Bank and Trust, Saul

question 207

True/False

After years of banking with Quality Bank and Trust, Saul decided to switch to a competing institution. Thanks to changes in government regulation, his search will uncover a variety of options; however, he will also learn that banks and nonbanks have merged in order to be more competitive in the banking and financial services industries, which may or may not increase his options.

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Definitions:

Dividends Payable

A liability account on a company's balance sheet representing the amount of declared dividends that are to be paid out to shareholders.

Date of Declaration

The date on which a company's board of directors announces a dividend payment to shareholders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall market capitalization remains unchanged.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuing company.