If a corporation declares a 2-for-1 stock split, which of the following is true?

Question

Quizplus · Accepted Answer

A stock split increases the number of shares outstanding while reducing the price per share. In a 2-for-1 stock split, each shareholder will receive two shares for every one share they previously held. Therefore, a stockholder who previously held 100 shares will have 200 shares after the split. The amount of stockholders' equity and capital stock remains the same as the split only affects the number of shares outstanding. The price per share will be halved, not doubled, as a result of the split.

If a Corporation Declares a 2-For-1 Stock Split, Which of the Following