A 3-For-1 Stock Split Will

question 78

Multiple Choice

A 3-for-1 stock split will:

• A) triple the par value and drop the number of outstanding shares by one-third.
• B) have no effect on the par value, but will affect the number of outstanding shares.
• C) have no effect on the number of outstanding shares, but will affect par value.
• D) cut the par value by one-third and triple the number of outstanding shares.

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Definitions:

Payee

The individual or entity to whom a payment is to be made or is made.

Certificate of Deposit

A savings certificate entitling the bearer to receive interest, which has a fixed maturity date and specified fixed interest rate.

Acknowledgement

The act of recognizing or admitting the truth, validity, or legality of something.

Maker

A person who makes or executes an instrument. The signer of an instrument.