Question

Ballpark has shares of par common stock outstanding. Ballpark announces a stock split of for1. What is the effect of the​ split?

Answer 1

The answer is 'it increases the number of shares outstanding'

Step-by-step explanation:

Stock split increases the number of shares outstanding. It causes dilution of earnings per share.

For example, ABC Inc. has 50,000 shares outstanding and it announces a stock split of 3-for- 1.

This means that any shareholder that has 1 will exchange that 1 share for 3 shares. So at the end of the stock split the total number of shares outstanding will be 150,000 shares (50,000 x 3)