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Which of the following statements concerning a two-for-one stock split is true?

 

a. The number of shares outstanding will decrease.  

 

b. The market price of the stock would be expected to increase.  

 

c. The company’s equity will increase.  

 

d. No journal entry would be necessary.

Project Finance Cash Flow Forecasting Financial Reporting Financial Systems Feasibility Studies
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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/06/08
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Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes Option a is the right answer.

Shazia Anees
by Shazia Anees , Assistant Manager Finance , Arham Trading Company

Option a. ====================

Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

a. The number of shares outstanding will decrease. 

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