A stock split commonly increases the stock's per share par value.

Question

Quizplus · Accepted Answer

A stock split does not change the stock's per share par value. Instead, it divides the existing shares into multiple shares, thereby increasing the number of outstanding shares while reducing the value of each share proportionally. For example, in a 2-for-1 stock split, each shareholder would receive two shares for every one share they previously held, but the par value per share would remain the same.

A Stock Split Commonly Increases the Stock's Per Share Par