All of the following are true of stock splits EXCEPT:

Question

1. market price per share is reduced after the split.

2. the number of outstanding shares is increased.

3. retained earnings are changed.

4. proportional ownership is unchanged.

Shahbaz Hayder · Answer

Yes Option3 is the right answer.

Ahmer Zamir · Answer

The correct option is3) The retained earnings are changed

mehfooz alam khan habib khan · Answer

Option3..............===...........

lakshminarasimham mallareddi · Answer

correct answer is4. proportional ownership is unchanged is not true of stock splits

PRADEEP VELAYUDHAN · Answer

3) retained earnings are not changed

Tranquilino Jr Rivera · Answer

Answer is3. Retained Earnings are changed. After a stock split, the account balances in the stockholders' equity are UNCHANGED. A stock split is one way for the directors to make a stock more enticing to the investing public for it results to a lower market price.

shambhu shivam · Answer

mrket price per share is reduced after the split

Wasim khan wazir · Answer

Option A market price not affected

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All of the following are true of stock splits EXCEPT:

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