Which of the following statements is not true about a 2-for-1 split?
A) Par value per share is reduced to half of what it was before the split.
B) Total contributed capital increases.
C) The market price will probably decrease.
D) A stockholder with ten shares before the split owns twenty shares after the split.

Question

Quizplus · Accepted Answer

In a 2-for-1 stock split, the total contributed capital does not increase; instead, the number of shares increases while the par value per share decreases, keeping the total contributed capital the same.

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