Which of the Following Statements Is False

question 16

Multiple Choice

Which of the following statements is false?

• A) Stocks generally trade in lots of 1,000 shares, and in any case do not trade in units less than one share.
• B) Non-cash special dividends are commonly used to spin off assets or a subsidiary as a separate company.
• C) The typical motivation for a stock split is to keep the share price in a range thought to be attractive to small investors.
• D) If a company declares a 10% stock dividend, each shareholder will receive one new share of stock for every 10 shares already owned.

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Definitions:

Basic Approach

A fundamental strategy or methodology used in a particular field of study or profession, focusing on core principles and techniques.

Personality

A set of emotional, cognitive, and behavioral patterns that are stable over time and across situations, distinguishing one person from another.

Advocates

Individuals or groups that actively support or defend a cause, policy, or individual’s rights.

Psychic Energy

In psychoanalytic theory, the energy that allows the psychological system to function; also called libido.