A ________ is a division of stock that gives stockholders a greater number of shares but does not change each individual's proportionate share of ownership.
A) stock dividend
B) stock split
C) stock yield
D) stock warrant

Question

Quizplus · Accepted Answer

A stock split is a division of stock that increases the number of shares outstanding while maintaining the same proportionate ownership for each shareholder. For example, a two-for-one stock split would double the number of shares outstanding and each shareholder would receive twice as many shares, but each individual's percentage ownership of the company would remain the same. A stock dividend is a distribution of additional shares of stock to existing shareholders as a form of dividend payment. A stock yield represents the income return on a stock investment, while a stock warrant gives the holder the right to purchase stock at a certain price within a specified time frame.

A ________ Is a Division of Stock That Gives Stockholders