when a corporation completes a 2-for-1 stock split, a.only the par value per share is decreased. b.only the ownership interest of current stockholders is decreased. c.only the market price per share of the stock is decreased. d.both market price per share and par value per share are decreased

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08-11-2022
Business

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when a corporation completes a 2-for-1 stock split, a.only the par value per share is decreased. b.only the ownership interest of current stockholders is decreased. c.only the market price per share of the stock is decreased. d.both market price per share and par value per share are decreased

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baliyansmiriti baliyansmiriti · Answer 1 · 2022-11-11T05:52:32+01:00

A corporation completes a 2-for-1 stock split, then both market price per share and par value per share are decreased.

While the overall ledger account balances do now no longer alternate after an inventory cut up, there's one alternate that ought to be noted: the par price in keeping with percentage decreases with an inventory cut up. If the inventory undergoes a two-for-one cut up earlier than the stocks are returned, it absolutely manner that the wide variety of stocks withinside the marketplace will double at the side of the wide variety of stocks that want to be returned. When an organization splits its stocks, the price of the stocks additionally splits.

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