Which of the Following Statements About a 2-For-1 Stock Split

question 54

Multiple Choice

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

• A)The market value of the shares will probably decrease.
• B)A shareholder with 200 shares before the split owns 400 shares after the split.
• C)Legal capital per share is reduced to half of what it was before the split.
• D)Total share capital increases.

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Definitions:

Financial Advantage

The gain or benefit obtained in financial terms, often seen in the context of investments or business operations.

Financial Advantage

Financial advantage refers to the benefit obtained from making a financial decision that results in positive outcomes, such as cost savings or increased revenue.

Costs Associated

Expenses that are linked to a specific product, activity, or department within a business.

Special Order

An order for a product or service that is outside of the company's regular operations or production schedule, often requiring special pricing or conditions.