When a Company Declares a 2-For-1 Stock Split

question 192

Multiple Choice

When a company declares a 2-for-1 stock split,

• A)stockholders' equity is doubled.
• B)there is no effect on total stockholders' equity.
• C)a shareholder who previously held 100 shares will have 300 shares after the split.
• D)the price of each share will be one-third of what it was before the stock split.

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Definitions:

Recourse

The legal right to demand a penalty, compensation, or satisfaction for a harm or loss.

Forged

Forged denotes something that has been counterfeit or fraudulently altered or replicated, such as a document, artwork, or signature.

Altered Check

A check that has been tampered with after its original issuance, often changing the name of the payee or the amount, with the intent to defraud.

Depositor

A depositor is an individual or entity that places money into a bank account or investment, entrusting the bank or financial institution with their funds.