Can any body help me to explain why the answer is 4?
Thanks in advance.
2B2-LS11
What is a primary difference between stock splits and cash dividends?
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1.Stock splits are usually paid quarterly; cash dividends are awarded annually.
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2.Cash dividends are usually paid quarterly; stock splits are awarded annually.
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3.Cash dividends do not result in any taxable gain or loss; stock splits are taxable.
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4.Stock splits do not result in any taxable gain or loss; cash dividends are taxable.
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SUNNY
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