What Is the Economic Difference Between a Stock Dividend and a Stock

question 130

Multiple Choice

What is the economic difference between a stock dividend and a stock split?

• A) Stock splits create greater economic benefits to shareholders than stock dividends.
• B) Stock splits increase EPS more than stock dividends.
• C) There is no economic difference between a stock dividend and a stock split.
• D) Stock dividends create greater economic benefits to shareholders than stock splits.

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Definitions:

Long-Arm Statute

A statute that enables a court to obtain jurisdiction against an out-of-state defendant as long as the defendant has sufficient minimum contacts within the state, such as committing a tort or doing business in the state.

Pure State Law

Legislation that is exclusively within the purview of an individual state’s legal system, without federal interference.

State Supreme Court

The highest court within a U.S. state, which typically has the final appellate jurisdiction over legal matters under the state's laws.

Intermediate Court of Appeal

A court that serves as an intermediary layer between the lower courts and the supreme or highest court of a jurisdiction, handling appeals.