Team Shirts issued a 2-for-1 stock split.Just before the split,Team Shirts had 100,000,$1 par value common shares outstanding.After the split,Team Shirts had ________ outstanding.
A)50,000 common shares
B)100,000 common shares
C)200,000 common shares
D)100,000 shares of preferred stock and 100,000 shares of common stock

Question

Quizplus · Accepted Answer

A 2-for-1 stock split means that for every 1 share held, an investor will receive 2 shares. Therefore, if Team Shirts had 100,000 common shares outstanding before the split, after the split they would have 200,000 common shares (100,000 x 2 = 200,000).

Team Shirts Issued a 2-For-1 Stock Split