The Reduction in the Par or Stated Value of Common

question 183

True/False

The reduction in the par or stated value of common stock, accompanies by the issuance of a proportionate number of additional shares, is called a stock split.

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Definitions:

Fixed Assets

Long-term tangible assets used in the operations of a business, not expected to be converted to cash within a year.

Current Level

Current level often refers to the present state or condition of a measurable variable, such as production, staffing, or inventory levels.

Financing Activities

Transactions and events where cash is raised or paid back to finance the company's operations, including issuing debt and equity or repaying loans.

Issuing Debt

Issuing debt refers to the process by which a corporation or government raises funds by selling bonds, notes, or other debt instruments to investors.