Which of the Following Occurs When a 2-For-1 Stock Split

question 212

Multiple Choice

Which of the following occurs when a 2-for-1 stock split is declared?

• A) The balance in Common Stock remains the same.
• B) The balance in Common Stock is reduced to half the original amount.
• C) The balance in Common Stock doubles.
• D) The balance in Paid-in Capital in Excess of Par-Common doubles.

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