An event that involves the issue of additional shares to shareholders according to their percentage ownership and a reduction in the stated value of each share is a:
A) share dividend.
B) cash dividend.
C) share split.
D) private placement.

Question

Quizplus · Accepted Answer

A share split involves the issue of additional shares to existing shareholders according to their percentage ownership and the effect is a reduction in the value of each share.

An Event That Involves the Issue of Additional Shares to Shareholders