Valerie Kilmer owns stock in the Williams Widget Company.She was just advised that in the near future she will be receiving two shares for every one share she owns today.What has the company declared that will cause this change to her shares?

Question

Quizplus · Accepted Answer

The company has declared a stock split, which increases the number of shares owned by shareholders proportionally, in this case, giving two shares for every one share currently owned. This does not change the overall value of one's investment in the company but does increase the number of shares they own.

Valerie Kilmer Owns Stock in the Williams Widget Company