Question
Which of the following involves a firm distributing stock instead of cash to its owners?
Multiple select question.
Stock split
Bond dividend
Stock dividend
Bond split
Multiple select question.
Stock split
Bond dividend
Stock dividend
Bond split
Answers
GPT-4o mini
The options that involve a firm distributing stock instead of cash to its owners are:
- **Stock dividend**: This is when a company issues additional shares of stock to its shareholders instead of paying a cash dividend.
- **Stock split**: While not a direct distribution of stock to owners as a dividend, a stock split increases the number of shares outstanding by splitting existing shares, which means shareholders end up with more shares but at a lower price per share.
The other options mentioned:
- **Bond dividend**: This is not applicable since it refers to a payment made on bonds, not stocks.
- **Bond split**: This term generally refers to the division of a bond into smaller denominations and does not involve stock distribution.
So, the correct answers are **Stock dividend** and **Stock split**.
- **Stock dividend**: This is when a company issues additional shares of stock to its shareholders instead of paying a cash dividend.
- **Stock split**: While not a direct distribution of stock to owners as a dividend, a stock split increases the number of shares outstanding by splitting existing shares, which means shareholders end up with more shares but at a lower price per share.
The other options mentioned:
- **Bond dividend**: This is not applicable since it refers to a payment made on bonds, not stocks.
- **Bond split**: This term generally refers to the division of a bond into smaller denominations and does not involve stock distribution.
So, the correct answers are **Stock dividend** and **Stock split**.