Davis Corporation Had 25,000 Shares of $10 Par Value Common

question 103

Essay

Davis Corporation had 25,000 shares of $10 par value common stock outstanding and declared a two-for-one stock split. How many shares of stock would then be outstanding and what would be the par value of the new stock?

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Definitions:

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.

Cumulative Voting

A method of electing boards of directors in which stockholders can cast all of their votes for a single seat. Enables minority interests to get at least some representation on the board.

Minority Stockholders

Minority stockholders are investors who own a smaller portion of a company's shares and typically do not have control or significant influence over the company's decisions.

American Political Culture

A set of shared values, beliefs, and behaviors that define the relationship between citizens and government in the United States.