Which of the Following Statements Is Not True About a 2-For-1

question 59

Multiple Choice

Which of the following statements is not true about a 2-for-1 split?

• A) Par value per share is reduced to half of what it was before the split.
• B) Total contributed capital increases.
• C) The market price will probably decrease.
• D) A stockholder with 10 shares before the split owns 20 shares after the split.

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Definitions:

Vital Capacity

The maximum amount of air a person can expel from the lungs after a maximum inhalation, important in assessing respiratory health.

Molecular Oxygen

A diatomic molecule made up of two oxygen atoms, essential for processes such as respiration in aerobic organisms.

Hemoglobin

An iron-containing protein in red blood cells that transports oxygen from the lungs to the tissues and carbon dioxide back to the lungs.

Pulmonary Emphysema

A lung condition that causes shortness of breath due to over-inflation of the air sacs in the lungs.