The division of each outstanding share of a corporation's stock into a greater number of shares is called
A) a stock split.
B) a stock conversion.
C) a stock dividend.
D) a cash dividend.
E) retained earnings.

Question

Quizplus · Accepted Answer

The division of each outstanding share of a corporation's stock into a greater number of shares is called a stock split. This is typically done to make the stock more affordable for investors to purchase and to increase liquidity. For example, a 2-for-1 stock split would result in each shareholder receiving two shares for every one share that they previously owned.

The Division of Each Outstanding Share of a Corporation's Stock