Which of the following statements is not true about a 2-for-1 split? A)Par value per share is reduced to half of what it was before the split. B)Total contributed capital increases. C)The market price probably will decrease. D)A stockholder with ten shares before the split owns twenty shares after the split.

Question

Quizplus · Accepted Answer

In a 2-for-1 stock split, the total contributed capital does not increase; it remains the same. The number of shares increases, but the value per share decreases proportionally, keeping the total capital unchanged.

Which of the Following Statements Is not True About a 2-For-1