SIE practice questionmediumStock Splits
A company with 1 million shares outstanding announces a 3-for-2 stock split. How many shares will be outstanding after the split?
- A1.5 million✓ Correct answer
- B2 million
- C3 million
- D1.25 million
Explanation
Why A — 1.5 million
A 3-for-2 split means each 2 shares become 3, so 1 million × 3/2 = 1.5 million. The other answers use incorrect calculations.
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