Some corporations pay their shareholders in the form of more shares. Which of the following best describes this type of payment?

Question

Quizplus · Accepted Answer

A stock dividend is a payment made by a corporation to its shareholders in the form of additional shares of stock, rather than cash. It represents a distribution of a portion of the corporation's profits to its shareholders and is usually issued in proportion to their existing holdings of the company's stock. Therefore, choice A is the best option for this scenario.

Some Corporations Pay Their Shareholders in the Form of More