corporate actions

Which corporate action involves a company selling a portion of its business to create a new, independent company?

• Merger

• Acquisition

• Spin-off
  

• Stock split

In a stock-for-stock merger, shareholders of the acquired company receive:

• Cash payments
  

• Bonds

• Shares of the acquiring company

• Employee benefits

What is a reverse stock split?

• A decrease in the number of outstanding shares along with an increase in stock price.

• A dividend payment made in the form of additional shares.

• The issuance of additional shares to existing shareholders.

• The splitting of common stock into preferred stock.

Which of the following is an example of a voluntary corporate action?

• Dividend payment

• Stock split

• Rights issue

• Merger

What are corporate actions in the context of finance and investment?

• Team-building activities within a corporation

• Business strategies for increasing customer engagement

• Decisions taken by a company that affect its stakeholders and share price

• Public relations campaigns aimed at boosting brand awareness

A company decides to issue additional shares to its existing shareholders at a predetermined price. What is this corporate action called?

• Stock split

• Dividend payment

• Rights issue

• Bonus issue

When a company merges with another company and ceases to exist independently, it is referred to as a:

• Spin-off

• Divestiture

• Merger

• Acquisition

Which corporate action results in the conversion of convertible securities into common stock?

• Stock split

• Dividend payment

• Conversion

• Reverse stock split

If a company declares a 2-for-1 stock split, what does this mean?

• Shareholders receive twice the dividends they previously received.

• Shareholders receive twice the number of shares they previously held.

• The company's stock price is cut in half.

• The company is undergoing a merger with another company

What is the purpose of a stock dividend?

• To distribute excess profits to shareholders

• To increase the company's debt

• To reduce the number of outstanding shares

• To attract new investors