Stock dividends are distributed to stockholders in proportion to the number of shares each stockholder already owns.

Question

Quizplus · Accepted Answer

This is a correct statement. Stock dividends are usually distributed in proportion to the number of shares held by each stockholder. For example, if a company declares a dividend of 50 cents per share and a stockholder owns 100 shares, they would receive a dividend payout of $50 ($0.50 x 100 shares).

Stock Dividends Are Distributed to Stockholders in Proportion to the Number