When a company declares a 3-for-1 stock split,the number of outstanding shares
A)is tripled compared to the number of shares that were outstanding prior to the split.
B)stays the same,but,the number of issued shares triples.
C)is tripled,while the number of issued shares is reduced to one-third of the original issued shares.
D)is reduced,and the number of issued shares is tripled.

Question

Quizplus · Accepted Answer

When a company declares a 3-for-1 stock split, the number of outstanding shares is tripled. This means that for every one share that existed prior to the split, three new shares are created, resulting in a total of four shares. Therefore, the number of outstanding shares is tripled compared to the number of shares outstanding prior to the split.

When a Company Declares a 3-For-1 Stock Split,the Number of Outstanding