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How does a stock split affect the ownership structure of a company?
  • a)
    It dilutes the ownership of existing shareholders.
  • b)
    It consolidates ownership for existing shareholders.
  • c)
    It has no impact on the ownership structure.
  • d)
    It increases the voting rights of existing shareholders.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
How does a stock split affect the ownership structure of a company?a)I...
A stock split dilutes the ownership of existing shareholders. While the number of shares held by each shareholder increases, their proportional ownership of the company decreases. This means that each shareholder holds a smaller percentage of the company's total ownership after a stock split.
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How does a stock split affect the ownership structure of a company?a)It dilutes the ownership of existing shareholders.b)It consolidates ownership for existing shareholders.c)It has no impact on the ownership structure.d)It increases the voting rights of existing shareholders.Correct answer is option 'A'. Can you explain this answer?
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