Question

A stock dividend causes a stockholder's percentage ownership in a company to ______. Multiple choice question. remain the same decrease increase

Answer 1

The stock dividend causes the stockholder's percentage ownership in a company to remain the same.

Basically, the stock dividend refers to the amount paid as part of profit distribution to the shareholders of a corporation.

• Stock dividend are paid to stockholders who hold a unit of share with the corporation.

• The stock dividend does not affect the percentage of ownership in the firm because it is paid directly to the stockholders

Therefore, the Option B is correct.

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