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متابعة

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.

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تم إضافة السؤال من قبل Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
تاريخ النشر: 2015/06/12
Shahbaz Hayder
من قبل Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes Option3 is the right answer.

Ahmer Zamir
من قبل Ahmer Zamir , Consultant , Saleem Associates & Co

The correct option is3) The retained earnings are changed

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

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

lakshminarasimham mallareddi
من قبل 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
من قبل PRADEEP VELAYUDHAN , Chief Accountant , Super Group

3) retained earnings are not changed

Tranquilino Jr Rivera
من قبل 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
من قبل shambhu shivam , no , study

mrket price per share is reduced after the split

Wasim khan wazir
من قبل Wasim khan wazir , Finance Specialist , Mott Macdonald

Option A market price not affected

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