When a corporation completes a 3-for-1 stock split
A) the ownership interest of current stockholders is decreased
B) the market price per share of the stock is decreased
C) the par value per share is decreased
D) the market price per share of the stock and the par value per share is decreased

Question

Quizplus · Accepted Answer

In a 3-for-1 stock split, each share is divided into three, which typically reduces both the market price per share (to make the stock more accessible) and the par value per share (the face value of the stock), reflecting the increased number of shares.

When a Corporation Completes a 3-For-1 Stock Split