Which of the Following Statements Is Not True About a 2-For-1

question 151

Multiple Choice

Which of the following statements is not true about a 2-for-1 split?

• A) Par value per share is reduced to half of what it was before the split.
• B) Total contributed capital increases.
• C) The market price will probably decrease.
• D) A stockholder with ten shares before the split owns twenty shares after the split.

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Definitions:

Promissory Note

A financial instrument containing a written promise by one party to pay another a definite sum of money either on demand or at a specified future date.

Negotiable

Capable of being transferred or assigned from one party to another, often used in the context of financial instruments.

Nonexistent Person

A fictional or imagined individual who does not exist in reality.

Negotiable

Capable of being transferred or converted into goods, services, or money under terms agreeable to all parties involved.