Valerie Kilmer owns stock in the Williams Widget Company.She was just advised that in the near future she will be receiving two shares for every one share she owns today.What has the company declared that will cause this change to her shares?

Question

Quizplus · Accepted Answer

A stock split is when a company increases the number of outstanding shares by issuing more shares to current shareholders. The result is that each shareholder ends up with more shares, but the overall value of their holdings remains the same. In this case, Valerie Kilmer is receiving two shares for every one share she currently owns, indicating that Williams Widget Company has declared a stock split.

Valerie Kilmer Owns Stock in the Williams Widget Company