A Stock Split

question 75

Multiple Choice

A stock split:

• A) increases the total value of the common stock account.
• B) decreases the value of the retained earnings account.
• C) does not affect the total value of any of the equity accounts.
• D) increases the value of the capital in excess of par account.
• E) decreases the total owners' equity on the balance sheet.

---

Definitions:

Anticompetitive Effect

Refers to actions that negatively affect competition in a market, including practices like monopoly, price fixing or others that hinder free competition.

Vertical Mergers

A combination of two or more companies involved in different stages of the supply chain process for a specific product or service.

Economic Efficiencies

A measure of how well resources are used to achieve economic goals, minimizing waste and maximizing output.

Clayton Act

A U.S. antitrust law enacted in 1914 to prevent anti-competitive practices in their incipiency and to supplement the Sherman Antitrust Act.