SIE Understanding Trading, Customer Accounts and Prohibited Activities Practice Question 7

Question: 7

Which of the following would represent the impact a three-for-one stock split would have on the par value of a share of stock?

A. The par value would be the same as the old share.

B. The par value would be one-third as much as the old share.

C. The par value would be one-third more than the old share.

D. The par value would be three dollars per share.