Final answer:
The distribution by a corporation of shares held by it in another corporation is known as a property dividend.
Step-by-step explanation:
When a corporation distributes shares it holds in another corporation, this is known as a property dividend. A property dividend occurs when a company gives shareholders assets other than cash, and in this case, it would be stocks from another company that the distributing company owns. This is different from a stock dividend, which involves additional shares of the distributing company itself being given to shareholders. A sale of capital assets would imply the company is selling assets for cash or other considerations, and sale of treasury stock refers to the company selling its own previously issued stock that it had repurchased from the market.