A Stock Split Will Cause Changes in the Dollar Value

question 6

Multiple Choice

A stock split will cause changes in the dollar value of which of the following?

• A)The total value of an investment in the company's stock
• B)The book value of common equity
• C)The market value of common equity
• D)The price of the stock

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Definitions:

Carrying Value

The book value of an asset or liability on a company's balance sheet, after accounting for depreciation, amortization, or impairment.

Held-To-Maturity

A classification for investment securities which the investor has the intent and ability to hold until they mature.

Market Value

The current quoted price at which an asset or service can be bought or sold in a marketplace.

Debt Securities

Financial instruments representing money owed by the issuer to the holder, typically in the form of bonds, bills, or notes.