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

Question

Quizplus · Accepted Answer

In a 2 for 1 stock split, the total share capital remains the same because the number of shares increases while the price per share decreases proportionally.

Which of the Following Statements About a 2 for 1