A Stock Split Results in a Transfer at Market Value

question 38

True/False

A stock split results in a transfer at market value from retained earnings to paid-in capital.

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Definitions:

Buyer in the Ordinary Course of Business

A term that describes a purchaser who buys goods in good faith from a seller who routinely deals in such goods, without knowledge that the sale violates the rights of a third party.

Good Faith

Honesty in fact.

Goods

All physically existing things that are movable at the time of identification to the contract for sale.

United States Code

A comprehensive consolidation and codification of the general and permanent federal statutes of the United States.