When the Board of Directors Approves a Two for One

question 17

Multiple Choice

When the board of directors approves a two for one stock split, the price for each share of stock

• A)remains unchanged.
• B)increases in value.
• C)decreases in value.
• D)is guaranteed to go up within a short period of time.
• E)always drops to half of its former value.

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Definitions:

Apparent Distance Hypothesis

A theory explaining that emotions can alter the perceived distance of an object, with negative emotions making objects seem further away.

Cultural Bias Hypothesis

The theory suggesting that cognitive tests and other assessments may be biased towards the values and experiences of a specific cultural group.

Visible Spectrum

The portion of the electromagnetic spectrum that is visible to the human eye, typically encompassing wavelengths from about 380 to 740 nanometers.

Wave

A disturbance that transfers energy from one place to another without transferring matter.