If a corporation declares a 2-for-1 stock split, which of the following is true?
A) A new class of stock must be authorized with twice the number of issued shares
B) The number of outstanding shares is half the number that was outstanding before the split
C) The humber of outstanding shares is twice the number that was outstanding before the split
D) The number of authorized shares is doubled, while the par value is reduced to half of the pre-split par value
Answer: C
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