Stock Dividends Reduce the Par Value of the Stock

question 94

True/False

Stock dividends reduce the par value of the stock.

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Definitions:

Stock and Bond Markets

Financial markets where shares of publicly held companies are issued and traded, and where debt securities are bought and sold.

Rates of Return

A measure of the profit or loss of an investment over a specified period, usually expressed as a percentage of the initial investment.

Equity Returns

The profit or loss generated on an investment in equity, represented as a percentage of the investment's initial cost.

Interest

The charge for borrowing money, typically expressed as an annual percentage rate.