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

question 48

Multiple Choice

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

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

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