A stock split is an increase in the number of issued and outstanding shares of stock, coupled with a proportionate reduction in the par value of the stock.

Question

Quizplus · Accepted Answer

A stock split involves increasing the number of shares outstanding while simultaneously decreasing the par value of each share. This allows more shares to be available for trading, while also reducing the price per share to make it more affordable for investors. As a result, a stock split does not typically impact the overall value of a company, but can make its shares more attractive to investors looking to buy in at lower prices.

A Stock Split Is an Increase in the Number of Issued