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Which of the Following Occurs When a 10 Percent Stock

question 63

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Which of the following occurs when a 10 percent stock dividend is paid?


Definitions:

Paid-In Capital

The amount of money that shareholders have invested in the company through the purchase of its stock, above the par value of the shares.

Par Value

A nominal value assigned to shares of stock by the issuing company, which may or may not reflect the shares' market value.

Excess of Par

The difference between the issue price of a stock and its par value, representing additional paid-in capital for the company.

Authorized Stock

The maximum number of shares a corporation is legally permitted to issue, as stated in its articles of incorporation.

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