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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.
Yes Option3 is the right answer.
The correct option is3) The retained earnings are changed
correct answer is4. proportional ownership is unchanged is not true of stock splits
3) retained earnings are not changed
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.
mrket price per share is reduced after the split
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