Which of the following is true of a corporation's stock?
A)Stocks are highly illiquid assets.
B)Stocks can be easily transferred from one person to another.
C)Dividends declared on stocks are not subject to personal income tax.
D)Dividend declared on stocks assure a steady income to the stockholders.

Question

Quizplus · Accepted Answer

Stocks can be easily transferred from one person to another through buying or selling on the stock market.

Answer: D
 Dividend declared on stocks may provide a steady income to the stockholders, but it is not a guarantee and is subject to change based on the corporation's earnings and decisions. Also, the amount of dividend income is dependent on the number of shares owned and the dividend rate.

Which of the Following Is True of a Corporation's Stock