A Pro-Rata Distribution of Additional Shares to Stock to the Current

question 40

Multiple Choice

A pro-rata distribution of additional shares to stock to the current owners of the stock is which of the following?

• A) stock dividend
• B) stock split
• C) payment date
• D) ex-dividend

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Definitions:

Undercapitalization

A situation in which a company does not have sufficient capital to conduct normal business operations and promote growth.