A ________ Is a Payment to Current Shareholders in Which

question 8

Multiple Choice

A ________ is a payment to current shareholders in which the payment is less than 25% of the current shares held.

• A)stock split
• B)stock dividend
• C)cash dividend
• D)specially designated dividend

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Definitions:

Goes Public

The process by which a privately-held company offers its shares to the public for the first time, through an initial public offering (IPO).

Stock Issue

The process by which a company distributes new shares to investors, either through a public offering or privately, to raise capital.

Potential Investors

Individuals or entities that may consider investing capital into a business, project, or security.

Tranches

Tranches are divisions or portions of debt or securities designed to divide risk or group characteristics in a way that is appealing to different investors.