Which one of the following involves a payment in shares by a stock issuer 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 the payment of additional shares to shareholders, increasing the number of shares they hold, but this also dilutes their ownership and decreases the value per share. Cash dividend, stock repurchase, stock split, and reverse stock split do not necessarily decrease the value per share.

Which One of the Following Involves a Payment in Shares