Georgia Assessments for the Certification of Educators GACE Practice Test 2025 - Free GACE Practice Questions and Study Guide

Stock dividends are dividends that are distributed by a company to its shareholders, resulting in additional shares of stock being issued. A stock dividend does not involve payment of cash by the issuing company, so it is incorrect to say that it is usually taxable. While stock dividends are often used to make a company's stock more attractive and can be discontinued or reduced at any time by the company, they are not determined directly by shareholders at large. Therefore, the statement that stock dividends are determined directly by shareholders at large is incorrect.