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

question 216

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 were previously outstanding before the split.
• C)The number of outstanding shares is twice the number that were previously outstanding before the split.
• D)The number of outstanding shares is doubled, while the number of issued shares is reduced to half of the amount before the split.

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Definitions:

Joint Tenancy

A form of legal co-ownership of property where co-owners have an equal share and the right of survivorship, meaning that upon the death of one owner, their share automatically passes to the remaining co-owners.

Right-Of-Way Easement

A legal right granted to a person or entity to pass through another's land for a specified purpose.

Solar Easement

A legal agreement that ensures uninterrupted access to sunlight for solar energy systems, often through a property owner's rights to protect against obstructions that would shade their solar collectors.

Historic Preservation Easement

A legal agreement that protects a property's historical features by restricting certain changes, ensuring its preservation for future generations.