X Corporation owns 15% of the outstanding shares of Z Corporation.The Z stock is distributed to the shareholders of X Corporation as a dividend at its current market value.This is an example of a:

Question

Quizplus · Accepted Answer

This is an example of a property dividend, where a company distributes assets other than cash (in this case, shares of another company) to its shareholders.

X Corporation Owns 15% of the Outstanding Shares of Z