A Stock Split

question 36

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) increases the par value per share.
• D) increases the value of the capital in excess of par account.
• E) decreases the market value per share.

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Definitions:

Domestic Corporations

Companies that are incorporated and operate within their home country, following its laws and regulations.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights and responsibilities.

Vote

To express a choice or decision in an election, meeting, or other decision-making process through a ballot, show of hands, or other means.

Plan of Merger

A detailed proposal outlining the terms, conditions, and process of merging one company with another.