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Question1 Coombs Corp. declared a two-for-one stock split. Solly Fogarty owned 500 shares of Coombs that were trading for $20
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If a stock that declares a split, the number of shares you would own after the split increases. However, the price per share reduces. This is because the market capitalisation remains the same. So, as an investor, though the price you get for each share actually declines, the total number of shares increases.a company decides to move forward with a 2-for-1 stock split. In this case, current shareholders would receive an additional share of stock for each one already held.However the value of each share, however, will be reduced by 50%.So the market value of each share will drop by 50%. Option A is true.

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