What Is the Effect of a Stock Split on Earnings

question 8

Multiple Choice

What is the effect of a stock split on earnings per share and the number of shares outstanding,respectively?

• A) Increase; Decrease
• B) Decrease; Increase
• C) Increase; Increase
• D) No effect; Increase
• E) Decrease; No effect

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Definitions:

Neurotransmitter

Chemicals in the brain that transmit signals from one neuron to another, affecting mood, thought processes, and physical actions.

Adenosine

A chemical found in the body that plays a role in promoting sleep and suppressing arousal, and is also a component of RNA.

Acetylcholine

A neurotransmitter in the nervous system that plays a critical role in muscle contraction and the modulation of alertness, memory, and learning.

Norepinephrine

A neurotransmitter and hormone important in the body's response to stress, affecting attention, heart rate, and other physiological functions.