A stock split is an increase in the number of outstanding shares of stock couples with a proportionate reduction in the par value of the stock.

Name: A stock split is an increase in the number of outstanding shares of stock couples with a proportionate reduction in the par value of the stock.
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Question

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A stock split increases the number of shares outstanding while reducing the par value per share proportionately, so that the total market capitalization remains the same.

A Stock Split Is an Increase in the Number of Outstanding