After a 2-For-1 Stock Split

question 48

Multiple Choice

After a 2-for-1 stock split:

• A)earnings per share decrease.
• B)earnings per share increase.
• C)capitalization decreases.
• D)capitalization increases.
• E)dividend yields decreasE.

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Definitions:

Investment Company

A business structure, such as a corporation or trust, dedicated to managing the combined investments of various investors in financial markets.

Front-end Loads

Charges or fees that are paid by investors at the time of purchasing shares of a mutual fund or an investment trust.

Low-load Mutual Funds

Mutual funds that charge a lower sales load (commission) compared to typical sales charges, making them more cost-effective for investors.

Asset Value

Asset value is the total value of a company's or individual's assets, calculated by summing the market value of all tangible and intangible items.