Which of the Following Statements Regarding Stock Splits Is Incorrect

question 17

Multiple Choice

Which of the following statements regarding stock splits is incorrect?

• A) A stock split increases total owners' equity.
• B) A stock split involves a reduction in the share's issue value.
• C) A stock split decreases the market price of the shares.
• D) A stock split is an increase in the number of authorized, issued, and outstanding shares.

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Definitions:

Cognitive Dissonance

The mental strain experienced when an individual harbors two or more conflicting beliefs, ideas, or values simultaneously.

Fundamental Attribution Error

The tendency to attribute others' actions to their character or personality, while attributing our own behaviors to external situations.

Competent

Having the necessary ability, knowledge, or skill to do something successfully.

Recall

The mental process of retrieving information from past experience or learning that is currently not in conscious awareness.