Preferred Products started business on March 1, 2012, and issued 100,000 shares of $2 par value common stock at a market price of $50 per share. One year later, the share price had soared to $120. If Preferred Products does a 3-for-1 stock split, the balance sheet will show that there are 200,000 shares issued.

Question

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After a 3-for-1 stock split, Preferred Products would have 300,000 shares issued (100,000 original shares multiplied by 3).

Preferred Products Started Business on March 1, 2012, and Issued