What is the expected impact of a 2-for-1 stock split?

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Quizplus · Accepted Answer

A stock split has no effect on the dollar amounts of assets,liabilities,and stockholders' equity.It only affects the number of shares of stock outstanding and the par value per share.A 2-for-1 stock split decreases the par value per share by one-half and replaces each existing share with two new shares.Because twice as many shares now represent the same ownership interest,the market value per share should be one-half as much as it was prior to the split.

What Is the Expected Impact of a 2-For-1 Stock Split