What Is a "Stock Split

question 52

Multiple Choice

What is a "stock split"?

• A)It is an increase in the number of shares issued for which book value consideration is received from investors.
• B)It is an increase in the number of shares issued for which no consideration is received from investors.
• C)It is an increase in the number of shares issued for which par value consideration is received from investors.
• D)It is an increase in the number of shares issued for which market value consideration is received from investors.

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Definitions:

Interest

Interest is the cost paid for borrowing money, typically expressed as an annual percentage of the principal amount, distinct from interest charged to specific loans.

IFRS

International Financial Reporting Standards, which are global accounting standards for preparing financial statements.

Liquidity

A measure of a company's or individual's ability to meet short-term obligations, often associated with the ease of converting assets into cash.

Liabilities

Financial obligations or debts that a company owes to external parties, which must be settled over time through the transfer of assets, provision of services, or other value.