SIE practice questionmediumStock Splits
A shareholder owns 100 shares at $60 each. After a 3-for-2 split, how many shares will the shareholder have and what will be the new share price (before market effects)?
- A66 shares at $90 each✓ Correct answer
- B150 shares at $40 each
- C200 shares at $30 each
- D100 shares at $90 each
Explanation
Why A — 66 shares at $90 each
A 3-for-2 split increases shares by 50% and decreases share price proportionally. The other answers don't reflect the math of a 3-for-2 split.
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