Corporations generally issue stock dividends in order to
A) increase the market price per share.
B) decrease the amount of capital in the corporation.
C) exceed shareholders' dividend expectations.
D) increase the marketability of the shares.

Question

Quizplus · Accepted Answer

Stock dividends increase the number of shares outstanding, which can lower the market price per share, making the shares more affordable and potentially more attractive to a broader range of investors, thus increasing marketability.

Corporations Generally Issue Stock Dividends in Order to