Corporations generally issue stock dividends in order to
A) increase the market price per share.
B) exceed stockholders' dividend expectations.
C) increase the marketability of the stock.
D) decrease the amount of capital in the corporation.

Question

Quizplus · Accepted Answer

Stock dividends are often issued to increase the marketability of the stock by increasing the number of shares available, which can make the stock more accessible to a wider range of investors due to a lower price per share. This does not directly aim to increase the market price per share, exceed dividend expectations, or decrease the corporation's capital.

Corporations Generally Issue Stock Dividends in Order to