A feature common to both stock dividends and stock splits is a
A) reduction in total stockholders' equity of a corporation.
B) transfer from retained earnings to additional paid-in capital.
C) reduction in par value.
D) change in the number of shares of stock outstanding.

Question

Quizplus · Accepted Answer

Both stock dividends and stock splits result in a change in the number of shares of stock outstanding, without altering the total stockholders' equity.

A Feature Common to Both Stock Dividends and Stock Splits