All of the following statements are true about a 3-for-1 split,except
A)total contributed capital increases.
B)the market price will probably decrease.
C)par value per share is reduced to one-third of what it was before the split.
D)a stockholder with 20 shares before the split owns 60 shares after the split.

Question

Quizplus · Accepted Answer

In a 3-for-1 stock split, the total contributed capital does not increase. Instead, the number of shares increases, and the par value per share decreases, but the total equity remains the same.

All of the Following Statements Are True About a 3-For-1