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Question
the distribution of additional shares to stockholders according to their percent ownership is known as a: multiple choice cash dividend. treasury stock buyout. stock split. cumulative dividend. participating dividend.
A stock - split is a corporate action in which a company divides its existing shares into multiple shares. This distribution is done according to the percentage ownership of the shareholders. For example, in a 2 - for - 1 stock split, each shareholder will receive an additional share for every share they own. A cash dividend is a payment made by a company to its shareholders in the form of cash. A treasury stock buyout is when a company buys back its own shares from the market. A cumulative dividend is a feature of preferred stock where if a dividend is not paid in a particular period, it accumulates and must be paid in the future. A participating dividend is a type of dividend where preferred shareholders can receive additional dividends beyond the stated rate if the company's profits exceed a certain level.
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Stock split.