Shareholders Also Have the Right to Receive Declared Dividends

question 328

Multiple Choice

Shareholders also have the right to receive declared dividends. Besides the potential for capital appreciation, investors also have the potential to receive dividend income. There are several types of dividends. For instance, an investor with 500 shares of stock selling at $50 per share would have 1,000 shares at $25 per share after a 2-for-1 split. These types of dividends are called:

• A) Cash dividends
• B) Stock split
• C) Preferred dividends
• D) None of these