Does a 2-1 stock split have any effect on common or preferred stocks?

Question

Does a 2-1 stock split have any effect on common or preferred stocks?

Answer 1

Normally a stock split that is 2 for 1 means that every share you own becomes 2 separate shares.  The market value of each new share becomes half the value of one of the original shares.  For practical purposes, you still own the same portion of the company.  

A stock split is often used as a signal to investors that the company is doing well.  Because of this, the market price of a given stock will often rise from the news that a split is in the offing.   However, in the long run, the value of a company's stock is dictated by the company's earnings performance, not the price of an individual share.

Answer 2

Yes, for every 2 shares you own, you get 1 share of the acquiring/surviving company.

Answer 3

It has an effect on the common stock, but not the preferred.  It increases the number of common shares by twice, reducing the per share numbers by 1/2, including the price per share, earnings per share, dividends per share, and all other per share statistics.