Which of the Following Statements Is not True About a 2-For-1

question 115

Multiple Choice

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

• A)The market value of the stock will probably decrease.
• B)A stockholder with 5 shares before the split owns 10 shares after the split.
• C)Par value per share is reduced to half of what it was before the split.
• D)Total paid-in capital increases.

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Definitions:

Contests

A promotional strategy involving prize giveaways where participants compete by performing a task under specified conditions.

Equal Value

The principle that two different items, services, or amounts have the same worth or importance.

Men's Store

A retail shop specializing in clothing and accessories for men.

Deal

An agreement typically involving the sale or purchase of goods or services at a specified price.