Which of the Following Occurs When a 2-For-1 Stock Split

question 39

Multiple Choice

Which of the following occurs when a 2-for-1 stock split is declared?

• A)The balance in common stock remains the same.
• B)The balance in common stock is reduced to half the original amount.
• C)The balance in common stock doubles.
• D)The balance in paid-in capital doubles.

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.