A stock split:
A) increases the total value of the common stock account.
B) decreases the value of the retained earnings account.
C) increases the par value per share.
D) increases the value of the capital in excess of par account.
E) decreases the market value per share.

Question

Quizplus · Accepted Answer

A stock split increases the number of outstanding shares, while keeping the overall value of the company the same. As a result, the market value per share is typically reduced to reflect the new number of shares. Therefore, a stock split decreases the market value per share.

A Stock Split