Which of the Following Statements Is Not True About a 2-For-1

question 175

Multiple Choice

Which of the following statements is not true about a 2-for-1 stock split?

• A) Total contributed capital remains the same.
• B) Par value per share is reduced to twice what it was before the split.
• C) A stockholder with twenty shares before the split owns forty shares after the split.
• D) The market price probably will decrease.

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Definitions:

Pension Rights

Legal entitlements of employees to receive benefits upon retirement, based on their service and contributions during their working life.

Indirect Compensation

Benefits provided to employees that are not part of their direct salary, such as health insurance, retirement plans, or employee assistance programs.

Workers' Compensation Acts

Laws that provide financial and medical benefits to employees who are injured or become ill as a direct result of their job.

Employer-Sponsored

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