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:

Tax Benefits

Tax benefits refer to deductions, exclusions, or credits that reduce the amount of taxes owed to the government.

Music Industry

The music industry consists of businesses and individuals who create, produce, market, and distribute musical performances and recordings.

Conglomerates

Large corporations composed of diverse companies or divisions across multiple industries, often resulting in expanded market presence or influence.

Music Sales

The transaction and distribution of musical recordings or compositions, generating revenue for artists, record labels, and distributors.