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

question 19

Multiple Choice

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

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

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Definitions:

Prestige Price

A pricing strategy where prices are set higher than average to create a perception of the product being exclusive or of superior quality.

Customary Pricing

A pricing method based on traditional prices for goods and services, often influenced by consumer expectations or market history.

Fixed-price

An agreement where the price of a product or service is set and not subject to change.