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

Question

Quizplus · Accepted Answer

A stock dividend increases the number of shares outstanding, reducing the price per share, which can make the stock more affordable to investors who may not want to purchase high-priced shares. This can make the stock more appealing to the average investor.

A Stock Dividend Is Sometimes Undertaken by a ﬁRm That