Register now or log in to join your professional community.
Declaration of stock split, no. stocks outstanding increases and par value decreases.
stock price will increase for making reserve stock split.
it will decrease so according to right option is2
1. decrease, we can see in stock spilt
when The company make reserve stock split Stock Price will be decrease
3 - Not change , split of stock does not contain any gain behind.
splitting of the stock leads to increase in the value of the atock
2- The reverse stock split leads to convert each group of stocks (2 or3 for example) to a single stock , and this will reduce the number of shares out standing and increase the stock price
3- it will not affect the stock price
The announcement of stock split will result in a slight to moderate increase in the price of existing stock.
Note:
the exact term is "Stock consolidation" " stock roll back" "reverse stock split" ---- the term r e s e r v e will convey a meaning --pending decision? I hope so.......?
