B) Increase the number of shares while proportionally decreasing the price per share. A stock split increases shares outstanding and reduces price per share proportionally; total value stays the same.

📈 CFA Exam Prep

Stock splits:

A Change total market capitalization

B Increase the number of shares while proportionally decreasing the price per share

C Increase total equity

D Change earnings

✓ Correct Answer: Option B

A stock split increases shares outstanding and reduces price per share proportionally; total value stays the same.

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Stock splits:

✓ Correct Answer: Option B

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