An individual stockholder's interest in a corporation does not change when the company declares a:

Question

Quizplus · Accepted Answer

A stock split or a stock dividend essentially changes the number of shares outstanding without affecting the individual stockholder's proportionate interest in the company. In both cases, while the number of shares owned by the stockholder increases, the overall value of their holding remains the same, as the price per share adjusts to reflect the split or dividend.

An Individual Stockholder's Interest in a Corporation Does Not Change