All of the Following Statements Are True About a 3-For-1

question 32

Multiple Choice

All of the following statements are true about a 3-for-1 split,except

• A)total contributed capital increases.
• B)the market price will probably decrease.
• C)par value per share is reduced to one-third of what it was before the split.
• D)a stockholder with 20 shares before the split owns 60 shares after the split.

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Definitions:

Personal Property

Any item of movable or intangible property owned by an individual that is not classified as real estate.

Tile and Carpeting

Flooring materials; tile refers to hard, durable materials like ceramic used for floors, and carpeting refers to thick, woven fabric coverings for floors.

Permanently Attached

Describes an item or fixture that is fixed securely to a property in such a way that its removal would cause damage to the property or the item itself.

Tenancy at Will

A rental agreement in which either the landlord or the tenant can terminate the lease at any time with sufficient notice, without cause.