SIE practice questionhardStock Splits
A 10-for-1 stock split is announced. If a shareholder owns 75 shares at $900 each before the split, what will they own after the split?
- A7.5 shares at $90
- B750 shares at $900
- C750 shares at $90✓ Correct answer
- D75 shares at $90
Explanation
Why C — 750 shares at $90
Shares multiply by 10 (75 × 10 = 750), price divides by 10 ($900 ÷ 10 = $90). The other answers mix up the split calculation.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Equity Securities questions
- A company reports 2 million issued shares and 1.6 million outstanding shares. How many shares are held as treasury…
- If a shareholder does NOT exercise or sell their subscription rights during a rights offering, what will happen?
- A company with net income of $2 million and 500,000 shares trades at $80 per share. What is the P/E ratio?
- Which tax issue is unique to holding ADRs?