Which of the following statements regarding a 2-for-1 stock split are TRUE?
I. The share price is reduced by half.
II. The total market value of the outstanding stock decreases.
III. The total market value of the outstanding stock may increase or decrease as a result of the split.
IV. The number of shares doubles.
A) II and III.
B) II and IV.
C) I and IV.
D) I and III.
Answer: C) I and IV.