A corporation has 50,000 shares of $25 par stock outstanding. If the corporation issues a 3-for-1 stock split, the number of shares outstanding after the split will be

A) 150,000 shares
B) 50,000 shares
C) 100,000 shares
D) 16,666 shares

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the shares remains the same.

Shares Outstanding

The total number of shares of a corporation that have been issued and are held by shareholders.

Par Stock

A standard inventory level that a business aims to maintain to ensure adequate supplies are available to meet demand without holding excessive stock.