A share split within the same class of shares generally:
A)increases the net value of the shares following the split.
B)decreases the net value of the shares following the split.
C)has no effect on the net value of the shares following the split.
D)reduces the capital surplus and increases the number of shares authorized.

Question

Quizplus · Accepted Answer

The MBCA recognizes that a share split or a share dividend in the same class of shares does not affect the value of the corporation or the shareholders' wealth because no assets have been transferred from the corporation to the shareholders.

A Share Split Within the Same Class of Shares Generally