Which of the following statements regarding stock splits is incorrect? A) A stock split involves a reduction in the share's issue value. B) A stock split is an increase in the number of issued, and outstanding shares. C) A stock split increases total owners' equity. D) A stock split decreases the market price of the shares.

Question

Quizplus · Accepted Answer

A stock split does not increase total owners' equity; it merely divides the company's existing equity into a larger number of shares, thus reducing the price per share but not changing the total value of equity.

Which of the Following Statements Regarding Stock Splits Is incorrect