Which one of the following involves a payment in shares that increases the number of shares a shareholder owns but also decreases the value per share?
A) Cash dividend
B) Stock dividend
C) Stock repurchase
D) Stock split
E) Reverse stock split

Question

Quizplus · Accepted Answer

A stock dividend involves issuing additional shares to existing shareholders, which increases the number of shares they own but dilutes the value of each share. This is in contrast to a cash dividend, which provides shareholders with a set amount of cash per share, or a stock repurchase, which involves a company buying back outstanding shares of its own stock. A stock split, on the other hand, involves a company increasing the number of outstanding shares while maintaining the same total value of the outstanding shares, and a reverse stock split involves the opposite - reducing the number of outstanding shares to increase the value per share.

Which One of the Following Involves a Payment in Shares