Question: Direction: Choose True if the statement is correct, otherwise choose False. All dividends, except for liquidating dividends, reduce the total stockholders' equity of a corporation.

Direction: Choose True if the statement is correct, otherwise choose False.

All dividends, except for liquidating dividends, reduce the total stockholders' equity of a corporation.

True

False

Old stockholders are priority in the distribution of new stocks authorized by SEC.

True

False

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