A Stock Split Decreases Par Value Per Share,whereas Stock Dividends

question 265

True/False

A stock split decreases par value per share,whereas stock dividends do not affect par value per share.

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Definitions:

Consideration

In contract law, something of value promised to another when making an agreement, which is required for the contract to be enforceable.

Racing Bike

A type of bicycle designed for competitive road cycling, characterized by its lightweight frame and components for speed.

Adequacy of Consideration

The fairness of the value exchanged in a contract, ensuring that what is given by each party is of comparable worth.

Legal

Pertains to the system of rules that are created and enforced through social or governmental institutions to regulate behavior.