Which statement about a "stock split" is correct?
A)The economic position of the investors is diluted after a stock split.
B)The economic position of the investors is increased after a stock split.
C)The economic position of the investors is decreased after a stock split.
D)The economic position of the investors is unaffected after a stock split.

Question

Quizplus · Accepted Answer

A stock split increases the number of shares outstanding but does not change the total value of the company, thus leaving the economic position of the investors unchanged.

Which Statement About a "Stock Split" Is Correct