Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

All of the following are true of stock splits EXCEPT:

 

 

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.

user-image
Question ajoutée par Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date de publication: 2015/06/12
Shahbaz Hayder
par Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes Option3 is the right answer.

Ahmer Zamir
par Ahmer Zamir , Consultant , Saleem Associates & Co

The correct option is3) The retained earnings are changed

mehfooz alam khan habib khan
par mehfooz alam khan habib khan , Security Incharge , Landmark Group (Emax)

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

lakshminarasimham mallareddi
par lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

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

PRADEEP VELAYUDHAN
par PRADEEP VELAYUDHAN , Chief Accountant , Super Group

3) retained earnings are not changed

Tranquilino Jr Rivera
par Tranquilino Jr Rivera , General Accountant , Enany Group of Companies

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
par shambhu shivam , no , study

mrket price per share is reduced after the split

Wasim khan wazir
par Wasim khan wazir , Finance Specialist , Mott Macdonald

Option A market price not affected

More Questions Like This