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.

---

Definitions:

Self-fulfilling Prophecy

A forecast that, whether directly or indirectly, ensures its own fulfillment through a positive loop between belief and action.

Social Trap

Situations where individuals or groups act against their long-term communal interests by pursuing short-term personal gains.

Superordinate Goals

Common goals that can only be achieved by two or more groups working together, thus promoting cooperation and reducing conflict between the groups.

GRIT

A psychological trait that describes an individual's perseverance and passion for long-term goals.