Respuesta :
The weighted average number of shares must be restated in order to reflect increased number of shares from the beginning of the year.
What is a stock split ?
A corporation may choose a stock split or a reverse stock split if it feels that the price of its shares is either too high or too low. A reverse stock split can increase a business's share price and help it maintain its listing on a major stock exchange, whereas a stock split can assist a company lower its share price to attract new investors.
When a company's board of directors distributes more shares of stock to its existing shareholders without reducing the value of their stakes, this is known as a stock split. A stock split reduces the individual value of each share while raising the number of outstanding shares.
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The complete question is mentioned below :
When a company performs a stock split or stock dividend in the middle of the year, they must restate the weighted average number of shares to reflect a(n)
A. increased number of shares from the time of the stock split or stock dividend.
B. decreased number of shares from the time of the stock split or stock dividend.
C. increased number of shares from the beginning of the year.
D. decreased number of shares from the beginning of the year.
