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A Stock Split Has the Effect of Reducing the Par

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Essay

A stock split has the effect of reducing the par value per share and the number of shares outstanding.


Definitions:

Debtor's Estate

All legal rights, interests, and properties owned by a debtor at the time of bankruptcy filing.

Creditor

A person or entity that lends money or extends credit to another party.

Declare Bankruptcy

The formal process by which an individual or business legally declares their inability to pay outstanding debts.

Involuntary Bankruptcy

A legal process initiated by creditors to force a debtor into bankruptcy when they believe the debtor is unable to pay their debts.

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