If a Corporation Declares a 2-For-1 Stock Split, Which of the Following

question 46

Multiple Choice

If a corporation declares a 2-for-1 stock split, which of the following is true?

• A) A new class of stock must be authorized with twice the number of issued shares.
• B) The number of outstanding shares is half the number that was outstanding before the split.
• C) The number of outstanding shares is twice the number that was outstanding before the split.
• D) The number of authorized shares is doubled, while the par value is reduced to half of the pre-split par value.

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