Hansom Products\' stock is trading for $130 per share, and the company currently

Question

Hansom Products' stock is trading for $130 per share, and the company currently has 2 million shares of common stock outstanding. The Board of Directors decides to increase the number of shares that are outstanding by issuing more shares to current stockholders, and every shareholder with one share of stock is given an additionalshare, but the price of shares is reduced to $65.00 each. This is an example of A. asset allocation B. an initial public offering a stock split D. compound growth E. price appreciation

Explanation / Answer

Answer
Option C
a stock split
because the stock is given to the current shareholder and the value is same as the capital.

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