When a corporation completes a 3-for-1 stock split
A) the ownership interest of current stockholders is decreased
B) the market price per share of the stock is decreased
C) the par value per share is decreased
D) b and c

Question

Quizplus · Accepted Answer

In a 3-for-1 stock split, the number of shares owned by current stockholders is tripled, but the value of each share is decreased by a third. This means that the market price per share and the par value per share both decrease.

When a Corporation Completes a 3-For-1 Stock Split