As a result of a stock split,
A)an entry must be made showing the effect on stockholders' equity.
B)the market price of the outstanding stock will increase because a split is evidence of a profitable company.
C)the par value of the stock is changed in the reverse proportion as the stock split.
D)the stockholders have a higher proportionate ownership of the company.

Question

Quizplus · Accepted Answer

In a stock split, the par value of the stock is adjusted inversely to the split ratio, meaning if the stock is split, the par value per share decreases proportionally.

As a Result of a Stock Split