Which of the Following Occurs When a 2-For-1 Stock Split

question 212

Multiple Choice

Which of the following occurs when a 2-for-1 stock split is declared?

• A) The balance in Common Stock remains the same.
• B) The balance in Common Stock is reduced to half the original amount.
• C) The balance in Common Stock doubles.
• D) The balance in Paid-in Capital in Excess of Par-Common doubles.

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Definitions:

Storing

The process of retaining information over time, an essential aspect of memory that allows individuals to preserve and recall experiences, facts, and knowledge.

Acquiring Information

The process of obtaining knowledge or data from various sources, through reading, observation, or research.

Spreading Activation

A theory in cognitive psychology that suggests ideas in the brain are connected in a network, and thinking about one concept triggers the recall of associated concepts.

Nodes

In network theory, points at which lines or pathways intersect or branch, which can refer to elements in a network or connections in a neural network.