A ________ increases the number of stock shares outstanding by replacing each existing share of stock with a stated number of new shares.

Question

Quizplus · Accepted Answer

A stock split increases the number of shares outstanding by replacing each existing share with a stated number of new shares. For example, in a 2-for-1 stock split, each shareholder would receive two shares for every share they currently own, effectively cutting the price per share in half. This can make the stock more affordable and increase liquidity, but does not change the overall value or ownership percentage for shareholders.

A ________ Increases the Number of Stock Shares Outstanding by Replacing