A stock split will cause a change in the total dollar amounts shown in which of the following balance sheet accounts?
Click on the arrows to vote for the correct answer
A. B. C. D. E.C
If a stock rises above a specific amount, management may declare, for example, a two-for-one stock split, where the number of shares outstanding doubles and the stock price is halved. Each stockholder would have more shares, but each share is worth less. Theoretically, a stock split should not affect the value of the firm. They are generally used after a sharp price run-up to produce a large price reduction.