Which One of the Following Involves a Payment in Shares

question 8

Multiple Choice

Which one of the following involves a payment in shares by a stock issuer that increases the number of shares a shareholder owns but also decreases the value per share?

• A)cash dividend
• B)stock dividend
• C)stock repurchase
• D)stock split
• E)reverse stock split

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Definitions:

Stock Market

The network of exchanges, brokers, and investors that trade in stocks.

Network of Investors

A group or community of individuals and organizations interested in investing in various opportunities, sharing risks, and exchanging knowledge.

Brokers

Individuals or firms that act as intermediaries between buyers and sellers in financial markets to facilitate transactions.

Raising Capital

The process by which a firm obtains money or funds to finance its operations, expansion, or investments.