Which of the following statements is not true about a 2-for-1 stock split? A)The market value of the stock will probably decrease. B)A stockholder with 5 shares before the split owns 10 shares after the split. C)Par value per share is reduced to half of what it was before the split. D)Total paid-in capital increases.

Question

Quizplus · Accepted Answer

In a 2-for-1 stock split, the total paid-in capital does not increase; instead, the number of shares increases while the par value per share decreases, keeping the overall equity the same.

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