A stock split results in a transfer at market value from retained earnings to share capital.

Name: A stock split results in a transfer at market value from retained earnings to share capital.
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Question

Quizplus · Accepted Answer

A stock split does not involve a transfer of funds between accounts; it simply increases the number of shares outstanding and proportionally adjusts the share price, leaving the market value of the company unchanged.

A Stock Split Results in a Transfer at Market Value