The Only Definite Result from a Stock Dividend or a Stock

question 34

Multiple Choice

The only definite result from a stock dividend or a stock split is

• A) an increase in the P/E ratio.
• B) an increase in the common stock's market value.
• C) an increase in the number of shares outstanding.
• D) cannot be determined from the above.

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Definitions:

Payable to Bearer

A financial instrument or document that allows the person in possession (the bearer) to receive the assets specified therein, without the need to prove identity.

Identified Person

An individual who has been recognized or singled out from others based on specific criteria or identifiers.

Indorsed

means to have a signature added to the back of a financial instrument, thereby authorizing its use or transfer to another party.

Order Paper

A financial instrument made out to a specific individual or entity and can only be transferred to a new holder when endorsed by the named party.