The declaration and distribution of a 2-for-1 stock split results in a reduction of retained earnings.

Name: The declaration and distribution of a 2-for-1 stock split results in a reduction of retained earnings.
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A 2-for-1 stock split results in the number of outstanding shares doubling while the value of each share is halved. This does not affect the balance of retained earnings, which represents accumulated profits that have not been paid out as dividends.

The Declaration and Distribution of a 2-For-1 Stock Split Results