A Corporation's Distribution of New Shares of Stock to the Corporation's

question 132

Multiple Choice

A corporation's distribution of new shares of stock to the corporation's current shareholders is called a ________.

• A)cash dividend
• B)liquidating dividend
• C)stock dividend
• D)stock split

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Definitions:

DuPont Cellophane Case

The antitrust case brought against DuPont in which the U.S. Supreme Court ruled (in 1956) that while DuPont had a monopoly in the narrowly defined market for cellophane, it did not monopolize the more broadly defined market for flexible packaging materials. It was thus not guilty of violating the Sherman Act.

Relevant Market

The market segment in which a company competes, defined by its products, customers, and geographic area.

Structure Versus Behavior

A distinction in competition policy and economic regulation focusing on the organization and arrangements of firms (structure) versus their actual conduct (behavior) in the market.

Rule Of Reason

The principle that not all actions deemed as restrictive of trade are illegal, depending on whether they are unreasonable restraints.