SIE Exam Practice Question 109

Correct Answer: B

Explanation:

A stock split is a maneuver used by a company that increases the number of shares outstanding by exchanging a specified number of new shares of stock for each outstanding share. A stock dividend is a distribution made by a company to its shareholders of additional shares of stock. Stock valuation is the process of determining the value of the shares of a company's stock. When a company uses its capital to repurchase shares it has previously issued, this is called a stock buyback.