EQL220 2

A bonus issue of shares is stock issued by a company in lieu of cash dividends.

• True

• False

The shareholders can sell the bonus shares to meet their liquidity needs.

• True

• False

A stock split is when a company increases the number of its outstanding shares to boost liquidity.

• True

• False

The most common split ratios are 2-for-1 or 3-for-1.

• True

• False

Bonus shares are paid out of the cash reserves of a company.

• True

• False

Dividend refers to a reward that a company gives to its _______.

• employees

• shareholders

Dividends can be issued in various forms, such as cash payment, stocks, etc.

• True

• False

Dividends is determined by the company's _______.

• employees

• board of directors

Dividend is paid to the shareholders for each share that they hold.

• True

• False

The date of dividend distribution is announced by the company in advance.

• True

• False