Which of the following statements about a 2 for 1 stock split is not true?
A) The market value of the share will probably decrease.
B) A shareholder with 200 shares before the split owns 400 shares after the split.
C) Legal capital per share is reduced to half of what it was before the split.
D) Total share capital increases.

Question

Quizplus · Accepted Answer

A 2 for 1 stock split does not affect the total share capital of a company. It merely divides the existing shares into more shares, reducing the market value per share but keeping the total capital unchanged.

Which of the Following Statements About a 2 for 1