Figure 16-2 
-Refer to the Figure 16-2.What is Curve 2?
Definitions:
Retained Earnings
Profits that a company has earned to date, less any dividends or other distributions paid to investors.
Stock Dividend
A dividend payment made in the form of additional shares rather than a cash payout.
Stockholders' Equity
The residual interest in the assets of a corporation that remains after deducting its liabilities. It represents ownership equity spread among shareholders.
Shares Outstanding
The total number of shares of a corporation that have been issued and are held by shareholders.
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