Stock Splits Have No Tax Implications Because

question 75

Multiple Choice

Stock splits have no tax implications because:

• A)shareholders have not increased their proportionate ownership of the firm.
• B)the shareholder's wealth has not increased as a result of the stock split.
• C)the shares originally owned by stockholders have been reduced in value in proportion to the number of additional shares received through the stock split.
• D)All of the above

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