Knowee
Questions
Features
Study Tools

An event that involves the issue of additional shares to shareholders according to their percentage ownership and a reduction in the stated value of each share is a: Group of answer choices a. cash dividend. b. private placement. c. share dividend. d. share split.

Question

An event that involves the issue of additional shares to shareholders according to their percentage ownership and a reduction in the stated value of each share is a: Group of answer choices a. cash dividend.

b. private placement.

c. share dividend.

d. share split.

🧐 Not the exact question you are looking for?Go ask a question

Solution

The correct answer is d. share split.

Here's why:

a. A cash dividend is a payment made by a corporation to its shareholders, usually in the form of cash. This is not the correct answer because it does not involve the issue of additional shares.

b. A private placement is a sale of stock shares or bonds to pre-selected investors and institutions rather than

Similar Questions

The issue of shares to identified investors is known as a: Group of answer choices a. non-for-profit issue. b. public issue. c. debt raising. d. private placement.

Which of the following allows shareholders of a public company to acquire additional shares at a discount? Group of answer choices New issues Placements Unsecured notes Private equity

A stock dividend ______. (Check all that apply.)Multiple select question.distributes additional shares of stock to existing stockholders on a pro rata basis.causes retained earnings to decrease.increases a stockholders' percentage ownership in the corporation.causes total stockholders' equity to decrease.

The shares offered to existing shareholders are called _______________, out of the following options?Options :Equity sharesRight issue of sharesPreference SharesOrdinary Shares

A stock dividend:Multiple Choiceis accounted for like a stock split.will reduce stockholders' equity similar to a cash dividend.will not change any of the accounts within stockholders' equity.will reduce Retained Earnings similar to a cash dividend.

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.