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

Question

Quizplus · Accepted Answer

In a 2-for-1 stock split, the par value of the stock is reduced to half of its pre-split value, while the number of shares doubles. This does not change the total value of stockholders' equity, so no journal entry is required, and the proportionate ownership remains the same. The market price typically adjusts to reflect the increased number of shares, often decreasing rather than increasing.

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