In a stock dividend, each shareholder who owns the stock before the ex-dividend date receives ________ from the firm.
A) additional shares
B) additional shares and stock
C) cash only
D) shares for partial cash payment

Question

Quizplus · Accepted Answer

In a stock dividend, the firm issues additional shares to each shareholder who owns the stock before the ex-dividend date. There is no cash payment involved, only additional shares are distributed among shareholders. Therefore, choice (A) is the correct answer.

In a Stock Dividend, Each Shareholder Who Owns the Stock