If a corporation declares a 2-for-1 stock split, which of the following is true?

Question

Quizplus · Accepted Answer

A 2-for-1 stock split means that each shareholder will receive two shares for every one share held before the split. So, a stockholder who previously held 100 shares will have 200 shares after the split. The amount of stockholders' equity and capital stock will not change, as the total value of the company remains the same. The price of each share will also be halved as a result of the split to reflect the increased number of shares, so it is not doubled.

If a Corporation Declares a 2-For-1 Stock Split, Which of the Following