In Case of Stock Dividend, the Shareholder's Proportion of Ownership

question 67

True/False

In case of stock dividend, the shareholder's proportion of ownership in a firm remains the same, and as long as the firm's earnings remain unchanged, so does his or her share of total earnings.

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Definitions:

Distributed

The process of spreading things or people over a wide area or among a large number of recipients.

Enthymeme

A rhetorical form of argument wherein one premise is not explicitly stated, relying on the audience's ability to fill in the gap.

Validity

A property of logical or analytical statements where the conclusion logically follows from the premises.

Unstated Premise

An implicit assumption or belief that is not explicitly expressed but is necessary for an argument's conclusion to hold.