A Stock Dividend Will

question 20

Multiple Choice

A stock dividend will

• A) increase the total value of stockholders' equity.
• B) decrease the total value of stockholders' equity.
• C) not affect the total value of stockholders' equity.
• D) change the total value of stockholders' equity but the direction cannot be determined unless the market price and par value is known.

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Definitions:

SEC Investigation

An inquiry conducted by the U.S. Securities and Exchange Commission into potential violations of securities laws or regulations.

Flash Crash of 2010

A very rapid and deep market decline, specifically on May 6, 2010, where major stock indices dropped and recovered dramatically within minutes.

Rate of Return

The net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.