Which One of the Following Is a Basis Point

question 10

Multiple Choice

Which one of the following is a basis point?

• A) 1 percent
• B) 0.1 percent
• C) 0.01 percent
• D) 0.001 percent
• E) 0.0001 percent

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Definitions:

Stock Dividend

A dividend payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the shares remains the same.

Stockholders' Equity

The residual interest in the assets of the entity after deducting liabilities, representing ownership equity spread among shareholders.