As a Result of a Stock Split

question 73

Multiple Choice

As a result of a stock split,

• A)an entry must be made showing the effect on stockholders' equity.
• B)the market price of the outstanding stock will increase because a split is evidence of a profitable company.
• C)the par value of the stock is changed in the reverse proportion as the stock split.
• D)the stockholders have a higher proportionate ownership of the company.

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Definitions:

Prematurely

Happening before the normal or expected time.

Fetus

A developing mammal or human from the embryonic stage to birth, after major structures have been outlined.

Uterus

A female reproductive organ where a fertilized egg implants and grows during pregnancy.

Pregnancy

The condition in which a female carries developing offspring within her body following fertilization.