Which Statement Is True About a Stock Split

question 138

Multiple Choice

Which statement is true about a stock split?

• A)Total shareholders' equity increases.
• B)Total shareholders' equity decreases.
• C)Total shareholders' equity remains the same.
• D)A change in total stockholders' equity depends upon whether it is a 2-for-1 split or a 3-for-1 split.

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Definitions:

Adsorption

The process by which atoms, ions, or molecules from a substance (it could be a gas, liquid, or dissolved solid) adhere to a surface of another substance.

Corrosion

The process of degradation of materials, especially metals, due to chemical reactions with their environment, leading to weakening and damage.

Fractures

Breaks, cracks, or splits in bones or geological formations, often resulting from stress or impact.

Leaks

Unintended escape of fluids (gas or liquid) from a container or system to the environment.