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:

Risk Society

A society where the management and prevention of risks, particularly those that are man-made, become central to social, political, and economic life.

Technological Determinism

The theory that technology shapes and determines the development of human social structure and cultural values.

Normal Accidents

The concept that in complex systems, accidents are unavoidable and inherent due to the intricate interactions and dependencies of system components.

Capital Investment

Money spent by a business entity to acquire or upgrade physical assets such as property, industrial buildings, or equipment to increase its long-term revenue.