Stock split-positive for the company and stockholders, Accounting Basics

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Stock split-positive for the company and stockholders

When Croc's, the shoe company, reported in early 2007 that its first quarter earnings had increased from the previous year, its stock price jumped to over $80 per share. At the same time, the company announced a 2 to 1 stock split.

Question 1. What is a stock split and what effect does it have on the company's stock?

Question 2. What effect will it likely have on the market value of the company's stock?

In light of your answers, do you think the stock split is positive for the company and for its stockholders?

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Accounting Basics: Stock split-positive for the company and stockholders

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Accounting Basics: Stock split-positive for the company and stockholders

Reference No:- TGS065491

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Phelps asset turnover ratio

Q : Quarterly income statement for the three month

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Q : How much cash did haden receive

Q : Stock split-positive for the company and stockholders

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Q : Equivalent to a merchandising firm

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Accounting Basics: Stock split-positive for the company and stockholders

Reference No:- TGS065491

Recent Questions Asked Accounting Basics

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Q : Quarterly income statement for the three month

Q : Proper accounting for restoration costs

Q : How much cash did haden receive

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Q : Beginning value of retained earnings problem

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Q : Equivalent to a merchandising firm

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