Which of the Following Dividends Does Not Actually Involve the Distribution

question 56

Multiple Choice

Which of the following dividends does not actually involve the distribution of money?

• A)Special dividends
• B)Liquidating dividends
• C)Stock dividends
• D)All of the dividends above involve the payment of cash to the stockholder.

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Definitions:

Dollar-Weighted Return

A method of calculating an investment's return that takes into account the timing and amount of cash flows into and out of the investment.

Time-Weighted Return

A method to measure the compound rate of growth in a portfolio, eliminating the effect of cash flows in and out of the portfolio.

Comparison Universe

A benchmark or group of benchmarks that portfolios are compared against to evaluate their performance or risk characteristics.

Mutual Funds

Investment funds that pool money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities.