SIE practice questionhardStock Splits
A shareholder owns 150 shares of a company trading at $30. After a 5-for-3 split, how many shares will they own and what is the new share price (before market effects)?
- A300 shares at $15
- B250 shares at $18✓ Correct answer
- C90 shares at $50
- D150 shares at $40
Explanation
Why B — 250 shares at $18
150 x (5/3) = 250 shares. New price = $30 x (3/5) = $18. Other options are incorrect applications of split math.
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