A company's current equity value is $2 million. If the company splits the stock 2 for 1, the equityvalue will
A) fall to $1 million.
B) increase to $4 million.
C) increase to $4 million for about a week and fall back to normal levels.
D) remain unchanged at $2 million.

Question

Quizplus · Accepted Answer

A stock split does not change the overall equity value of a company; it only increases the number of shares while reducing the price per share proportionally.

A Company's Current Equity Value Is $2 Million