Which of the Following Occurs When a Stock Is Split

question 24

Multiple Choice

Which of the following occurs when a stock is split two-for-one?

• A) the price of the stock doubles
• B) the firm's assets increase
• C) the firm's liabilities decrease
• D) the par value of the stock is reduced

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Definitions:

Board Members

Individuals elected or appointed to oversee the activities of a company or organization, providing governance, strategic direction, and oversight.

Staff

Individuals employed by an organization, particularly those on the payroll who contribute to the execution of tasks and functions.

Mission Creep

The gradual broadening of the original objectives of an organization or mission, often leading to a shift in focus and dilution of efforts.

Program Decentralization

The process of distributing administrative functions, powers, or tasks from a central authority to regional or local branches or units within an organization or system.