Which of the Following Is Not a Side Effect of a Stock

question 28

Multiple Choice

Which of the following is not a side effect of a stock split?

• A) There is no effect on retained earnings account
• B) Investors face no tax implications
• C) The average share price will be reduced to reflect the split
• D) There will be no change in the number of shares outstanding

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Definitions:

Shield Volcanoes

Large, broad volcanoes with gentle slopes, built by the eruption of low-viscosity lava that can flow long distances.

Fluid Lava

Magma that has reached the surface through a volcanic eruption and flows easily due to its low viscosity.

Viscous Lava

Lava that is thick and slow-moving due to its high silica content, which increases its viscosity.

Scoria Cone

A type of volcanic cone formed from fragments of lava ejected from a single vent, characterized by its steep sides and often associated with basaltic lava flows.