Which of the following is a true statement?
A)A corporation generally obtains equity capital from bondholders.
B)A corporation must issue either preferred stock or common stock but not both.
C)When a corporation is experiencing financial problems, an investor should purchase common rather than preferred stock.
D)Corporations are required to pay dividends every year.
E)There are no guarantees that a stock's value will go up after a stock split.

Question

Quizplus · Accepted Answer

A stock split does not guarantee an increase in a stock's value. It only changes the number of outstanding shares, which may affect the stock's price in the short term but does not necessarily have a long-term impact on its value. The other statements are false or inaccurate.

Which of the Following Is a True Statement