The Shareholder Receiving a Stock Dividend Receives ________

question 90

Multiple Choice

The shareholder receiving a stock dividend receives ________.

• A) a share of common stock of equal value to their existing shares of common stock
• B) cash
• C) additional shares of common stock and cash
• D) nothing of value

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Definitions:

Corporate Right

The legal entitlements and privileges granted to corporations, including the ability to enter contracts, own assets, and sue or be sued.

Quorum

The smallest number of participants needed in a meeting to validate its proceedings.

Shareholders' Meeting

An official gathering of the shareholders of a company to discuss the company's affairs, make decisions, and vote on corporate issues.

Cumulative Voting

A voting system used in corporate elections that allows shareholders to accumulate their votes and allocate them to one or several candidates, enhancing minority shareholders' chances of representation.