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31 December, 22:52

1. An investor owns 250 shares of ABC Company stock and its shares are trading at

$80 per share. The company does a stock split of 2:1. How many shares will the

investor now own? What will be the price per share?

E COE

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Answers (1)
  1. 31 December, 23:20
    0
    The companies will own 125 shares

    Price will be 40$ per share

    stock split of 2:1 is there then 250 is divided by 2 ie 125 shares each.

    2:1 means for every 2 share now company will give you one single share

    And as share price will also be reduced by half.
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