A corporation has 10,000 shares of $100 par value stock outstanding that has a current market value of $160.If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately $32.

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If the corporation issues a 4-for-1 stock split, the number of outstanding shares will increase to 40,000 (10,000 x 4), but the market value per share will decrease proportionally to $40 (not $32), as the overall value of the company remains the same.

A Corporation Has 10,000 Shares of $100 Par Value Stock