[amp_mcq option1=”Dividend payment” option2=”Bonus issue” option3=”Financial restructuring” option4=”Dividend in kind” correct=”option2″]<\/p>\n
The correct answer is: B. Bonus issue<\/strong><\/p>\n A stock split is a corporate action in which a company divides its existing shares into multiple shares. For example, if a company has 100 shares outstanding and it splits its stock 2-for-1, then each shareholder will now have 200 shares. The total number of shares outstanding will double, but the market capitalization of the company will remain the same.<\/p>\n A stock split is not the same as a dividend payment. A dividend payment is a distribution of cash or stock to shareholders. A stock split is a change in the number of shares outstanding, but it does not involve any distribution of cash or stock.<\/p>\n A stock split is also not the same as a bonus issue. A bonus issue is a type of stock split in which the company issues new shares to existing shareholders without any charge. The total number of shares outstanding increases, and the market capitalization of the company also increases.<\/p>\n A stock split is not the same as a financial restructuring. A financial restructuring is a change in the capital structure of a company, such as a merger, acquisition, or bankruptcy. A stock split is a change in the number of shares outstanding, but it does not involve any change in the capital structure of the company.<\/p>\n A stock split can be used to increase liquidity, make the stock more affordable for individual investors, or signal to the market that the company is doing well.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Dividend payment” option2=”Bonus issue” option3=”Financial restructuring” option4=”Dividend in kind” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-48365","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n