Which of the Following Is/are True Regarding Stock Splits

question 173

Multiple Choice

Which of the following is/are true regarding stock splits?

• A)The corporation issues additional shares of stock to shareholders in proportion to their existing holdings.
• B)The firm receives no additional assets.
• C)Firms may execute a stock split by reducing the par value of the common stock in proportion to the new number of shares issued.
• D)Firms may execute a stock split by not making any change in par value but by issuing additional shares of the same par value.
• E)all of the above

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Definitions:

Intermediaries

Entities that act as middlemen in the distribution process between producers and consumers, such as wholesalers and retailers.

Producer

An individual or organization that creates goods or services for sale to consumers or other businesses.

Marketing Channel

A set of practices or activities necessary to transfer the ownership of goods, and to move goods from the point of production to the point of consumption.

Farmer's Market

A public marketplace where local farmers and artisans sell their produce, goods, and crafts directly to consumers.