Asked by
Christina Adeyemi
on Oct 15, 2024Verified
A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a:
A) Stock dividend.
B) Stock subscription.
C) Premium on stock.
D) Discount on stock.
E) Treasury stock.
Stock Dividend
A distribution of additional shares of a company to its shareholders, rather than paying a cash dividend.
Stock Subscription
Stock subscription refers to the process of offering new shares to existing or potential investors, often before the public offering.
Treasury Stock
Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock.
- Learn about the effects that stock dividends have on the trading price, equity value, and the volume of shares outstanding.
Verified Answer
TJ
Learning Objectives
- Learn about the effects that stock dividends have on the trading price, equity value, and the volume of shares outstanding.