Stock dividend is distributed among :

A preference shareholders
B debenture holders
C common shareholders
D directors

Correct Answer: common shareholders

The value of the dividend is distributed between common stock and additional paid - in capital. The common stock sub - account includes only the par, or face value, of the stock. The additional paid - in capital sub - account includes the value of the stock above its par value.
Bissoy MCQ

Related Questions

A company declares a 40% stock dividend when there are 4.0 million common shares outstanding with a Tk.1 per value. Their current market price is Tk. 20 per share. Which of the following will be the effect of the stock dividend ?
Stock dividend is distributed among
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