When a Corporation Completes a 3-For-1 Stock Split

question 93

Multiple Choice

When a corporation completes a 3-for-1 stock split

• A) the ownership interest of current stockholders is decreased
• B) the market price per share of the stock is decreased
• C) the par value per share is decreased
• D) the market price per share of the stock and the par value per share is decreased

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Definitions:

Price Reductions

A strategic decrease in the selling price of products or services, typically to drive sales volume, clear inventory, or respond to competitive market pressures.

Rebates

A partial refund to someone who has paid too much for tax, rent, or a utility, or as a promotional incentive offered by manufacturers or retailers after purchase.

Samples

Small quantities or instances of a product or material used for testing, evaluation, or demonstration purposes to gauge its characteristics or the population’s response.

Controlled Experiments

A research method where variables are manipulated to observe the effect on a dependent variable, often used to establish causal relationships.