If a Stock Has a 2-For-1 Split

question 65

Multiple Choice

If a stock has a 2-for-1 split:

• A)the value of the stock is guaranteed to increase.
• B)the value of the stock is guaranteed to decrease.
• C)total market capitalization increases.
• D)total market capitalization decreases.
• E)total market capitalization does not change.

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Definitions:

Charity

An organization set up to provide help and raise money for those in need.

Reasonable Price

A price that is fair and suitable for the value or quality of goods or services provided, often considered in a legal context.

Gratuitous Promise

A promise for which no consideration is exchanged, often lacking legal enforceability unless certain criteria are met.

Legal Requirement

A stipulation or condition imposed by law that must be obeyed or met, often used in the context of regulatory compliance.