Which of the Following Statements Is Not True About a 2-For-1

question 151

Multiple Choice

Which of the following statements is not true about a 2-for-1 split?

• A) Par value per share is reduced to half of what it was before the split.
• B) Total contributed capital increases.
• C) The market price will probably decrease.
• D) A stockholder with ten shares before the split owns twenty shares after the split.

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Definitions:

Informational Influence

A form of social influence involving the change in beliefs or behavior that occurs when an individual accepts information from others as evidence about reality.

Group Norms

Accepted standards or behaviors shared by a group's members, guiding their actions and decisions.

Injunctive Norm

A type of social norm that describes what is commonly approved or disapproved within a culture or group.

Normative Influence

The influence of other people that leads us to conform in order to be liked and accepted by them, often resulting in public compliance but not necessarily private acceptance.