Stock Broker Practice Test
Stock Broker Investment Products & Securities Types 3
What is the key difference between a stock split and a stock dividend?
Select your answer
A
A stock split reduces share price proportionally while a stock dividend issues additional shares from retained earnings
B
A stock split pays cash to investors while a stock dividend creates new shares
C
A stock split is taxable immediately while a stock dividend is not
D
A stock split only applies to preferred shares
Hint
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