A Stock Dividend Is a Payment of Shares to Current

question 44

True/False

A stock dividend is a payment of shares to current shareholders in which the payment is less than 50% of the current shares held.

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Definitions:

Contract

A legally binding agreement between two or more parties that outlines obligations each party must fulfill.

Principal

The original sum of money borrowed in a loan, or the amount of money invested excluding earnings or interest.

Gratuitous

Given without receiving any value in return; often refers to acts of kindness or gifts.

Revoke

The action of taking back, withdrawing, or annuling an offer, right, or privilege.