If the issued and outstanding shares are broken up into a greater number of shares,each representing a proportionately smaller interest in the corporation,this is known as a:
A) property dividend.
B) stock split.
C) stock dividend.
D) liquidating dividend.

Question

Quizplus · Accepted Answer

When the issued and outstanding shares are broken up into a greater number of shares, but the overall value of the shareholders' holdings remains the same, it is known as a stock split. This is achieved by increasing the number of outstanding shares and decreasing their individual par value. The purpose of a stock split is to make the shares more affordable for investors and increase trading liquidity.

If the Issued and Outstanding Shares Are Broken Up into a Greater