Does a stock dividend increase an investor’s personal wealth immediately?

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Does a stock dividend increase an investor’s personal wealth immediately?

a. No, because the stock price falls when a stock dividend is issued.
b. Yes, because the investor has more shares.
c. Yes, because the investor acquired additional shares without paying a brokerage fee.
d. Yes, because the investor will receive more in cash dividends by owning more shares.

Answer: a. No, because the stock price falls when a stock dividend is issued.

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