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When a share split occurs: current shareholders receive more shares thus increasing their stake in the company. accounting entries are required to record the increase
When a share split occurs:
current shareholders receive more shares thus increasing their stake in the company. | ||
accounting entries are required to record the increase in the number of shares on hand. | ||
it must be done so that any uncalled amounts are divided equally when the shares are issued. | ||
more shares are available to be purchased by the general public, allowing the company to raise more funds. |
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