What is the term for 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
E) Stock exchange

Question

Quizplus · Accepted Answer

A stock split involves dividing existing shares into multiple shares, thereby increasing the total number of shares outstanding. However, the overall value of each shareholder's investment remains the same, as the proportionate share of ownership is not changed. This is different from a stock dividend, which involves the distribution of additional shares as a form of dividend payment.

What Is the Term for a Division of Stock That