Question
Stock Split Which of the following statements about the stock split is INCORRECT? 1. Retained earnings are reduced in the same proportion as the increase
Stock Split
Which of the following statements about the stock split is INCORRECT?
1. Retained earnings are reduced in the same proportion as the increase in the share capital.
2. The market price per share is reduced after the stock split.
3. The number of outstanding common shares increases in the market.
4. The proportional ownership remains the same
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Cases In Financial Reporting
Authors: Ellen Engel, D. Eric Hirst, Mary Lea McAnally
7th Edition
1934319791, 9781934319796
