A two-for-one stock split will result in:
A) the firm acquiring new assets.
B) a decrease in the stock price, but an increase in shareholder wealth.
C) an increase in the stock price, and an increase in shareholder wealth.
D)a decrease in the stock price and no change to shareholder wealth.

Question

Quizplus · Accepted Answer

A two-for-one stock split increases the number of shares outstanding while reducing the price per share accordingly, without affecting the overall market capitalization or shareholder wealth.

A Two-For-One Stock Split Will Result In