Which one of the following is a direct result of a 2-for-1 stock split?
A)a 100 percent increase in the number of shareholders
B)a 100 percent increase in the common stock account balance
C)a 100 percent decrease in the stock price
D)a 50 percent increase in the number of shares outstanding
E)a 50 percent decrease in the par value per share

Question

Quizplus · Accepted Answer

In a 2-for-1 stock split, the number of shares outstanding doubles, and the par value per share is halved, resulting in a 50 percent decrease in the par value per share.

Which One of the Following Is a Direct Result of a 2-For-1