Similarly, Livingston might send its shareholders additional shares equal to the number of shares they own, or even double or triple this number of shares. Livingston may do this because it believes a high market price per share has an undesirable influence in trading the stock. This is called a stock split . If Livingston’s stock previously had a market price of $200 per share for its 100,000 shares, and it made a “two-for-one”

stock split, the number of shares of stock outstanding would [increase /

decrease / not change]. Cash would [increase / decrease / not change].

The market price per share would [increase / decrease / not change].