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Stock dividends immediately increase the total value of the shareholders' investment.
BT: Comprehension
Capital Stock
The total amount of stock that a company is authorized to issue, representing ownership in the company.
Cumulative Preferred Stock
Preferred stock that, if the corporation doesn’t pay the specified percentage, has the unpaid amount (the dividend in arrears) carried over to the following year or years.
Capital Stock
The total amount of shares that a corporation is authorized to issue to shareholders, representing the primary source of equity financing for the company.
Cumulative Preferred Stock
A type of preferred stock that entitles the shareholder to receive dividends that were missed in the past before any dividends are paid to common stock shareholders.
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