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Which of the following represents a stock split?Multiple Choice100 shares are converted into 1 bond100 shares becomes 10 shares10 shares becomes 100 shares10 shares are converted into 1 bondNone of the answers are correct.

Question

Which of the following represents a stock split?Multiple Choice100 shares are converted into 1 bond100 shares becomes 10 shares10 shares becomes 100 shares10 shares are converted into 1 bondNone of the answers are correct.

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Solution

The correct answer is "10 shares becomes 100 shares". This represents a stock split, where a company increases the number of shares in circulation, but the total market value remains the same. This is often done to make the stock more affordable for investors.

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