Which of the Following Is Correct Regarding a Two-For-One Stock

question 39

Multiple Choice

Which of the following is correct regarding a two-for-one stock split?

• A) After the split, each stockholder will have greater ownership interest in the corporation.
• B) The purpose of the split is to make a distribution to the stockholders.
• C) The purpose of the split may be to decrease the value per share of the stock.
• D) The value of each share of stock will increase as a result of the split.

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Definitions:

Homeostasis

The process through which living organisms maintain equilibrium while adapting to circumstances that are best for their continuation.

Self-transcendence

A psychological state or quality of going beyond personal needs and interests, often involving spiritual experiences or altruism.

Self-actualization

A psychological concept from Maslow's hierarchy of needs, referring to the realization or fulfillment of one's talents and potentialities.

Belongingness

The human emotional need to be an accepted member of a group, whether it is family, friends, colleagues, or within a community.