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:

American Motors

A now-defunct American automobile company that was known for producing vehicles from 1954 until 1987.

Alcoa Case

A landmark antitrust case in the United States in which the Aluminum Company of America (Alcoa) was found to have monopolized the aluminum industry through various means, leading to significant implications for antitrust law.

Rule of Reason

A legal doctrine used in US antitrust law that determines the legality of business practices based on their actual impact on market competition.

Relevant Market

The market segment in which a particular company's product or service competes, including potential customers and competing products.