What is the most likely effect of a stock split on the par value per share and the number of shares outstanding? Par Value Number of shares
Per share outstanding
A) Decrease Increase
B) Decrease No effect
C) Increase Increase
D) No effect No effect

Question

Quizplus · Accepted Answer

A stock split decreases the par value per share and increases the number of shares outstanding. This is because in a stock split, the total value of shares remains the same but is divided among a greater number of shares, thus reducing the par value of each share while increasing the total number of shares.

What Is the Most Likely Effect of a Stock Split