A stock split results in the reduction of the value per share and a proportionate increase in the number of shares outstanding.

Name: A stock split results in the reduction of the value per share and a proportionate increase in the number of shares outstanding.
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Question

Quizplus · Accepted Answer

This is the definition of a stock split. The total value of outstanding shares remains the same, but the number of shares increases and the price per share decreases proportionally.

A Stock Split Results in the Reduction of the Value