Posted by Donald on .
Which of the following statements are true of a “two-for-one stock split?”:
1. It may signal higher future earnings
2. By creating more shares at a lower price, marketability may be improved
3. It increases the “Equity Section” of a company’s Balance Sheet
a. 1 and 2
b. 1 and 3
c. 2 and 3
d. All three are true
Prin of finance -
Equity is not changed.