Stock Dividends Have No Impact on the Total Amount of Stockholders

question 54

True/False

Stock dividends have no impact on the total amount of stockholders' equity.

---

Definitions:

Status Quo Bias

Status quo bias is the tendency to prefer things to remain the same or to prefer options that are perceived as the current or default state.

Certainty Effect

The tendency for people to favor options that are certain over those that are probable, even when the probable options may result in a better outcome.

Risk Aversion

Risk Aversion is the tendency to avoid or minimize risks, reflecting a preference for certainty or safer options when making decisions under conditions of uncertainty.

Zeigarnik Effect

A tendency to experience automatic, intrusive thoughts about a goal whose pursuit has been interrupted.