A stock dividend is sometimes undertaken by a firm that wishes to make its stock price more appealing to the average investor.

Name: A stock dividend is sometimes undertaken by a firm that wishes to make its stock price more appealing to the average investor.
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Question

Quizplus · Accepted Answer

A stock dividend does not change the value of the company but increases the number of shares outstanding, which can lead to a lower price per share, making the stock more appealing to the average investor by improving its affordability.

A Stock Dividend Is Sometimes Undertaken by a Firm That