A shareholder who receives a stock dividend would
A) expect the market price per share to increase.
B) own more shares.
C) expect retained earnings to increase.
D) expect the overall value of his or her shares to change.

Question

Quizplus · Accepted Answer

Stock dividends result in the shareholder owning more shares of the company, although the total value of their investment remains the same because the market price per share adjusts to reflect the increased number of shares.

A Shareholder Who Receives a Stock Dividend Would