What Is the Expected Impact of a 2-For-1 Stock Split

question 36

Multiple Choice

What is the expected impact of a 2-for-1 stock split?

• A)A decrease in the market price of the stock
• B)Increased protection of the interest of creditors
• C)An increase in the par value of the stock
• D)The absorption of treasury stock

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Definitions:

Fundamental Breach

A severe violation of a contract that justifies the aggrieved party's right to terminate the agreement and seek damages.

Condition

An essential term of a contract.

Replacement Warranty Clause

A provision in a contract or agreement guaranteeing the replacement of defective goods or services within a specified period.

Rescind

To revoke, cancel, or repeal a contract, agreement, or resolution, effectively rendering it null and void.