SIE practice questioneasyStock Splits
After a 2-for-1 stock split, an investor who owned 100 shares at $50 per share will now own:
- A200 shares at $50 per share
- B200 shares at $25 per share✓ Correct answer
- C100 shares at $25 per share
- D50 shares at $100 per share
Explanation
Why B — 200 shares at $25 per share
A 2-for-1 split doubles the number of shares and halves the price per share, so the investor has 200 shares at $25. Other answers mix up split effects.
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.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Equity Securities questions
- Why are preemptive rights issued to shareholders?
- How do stock warrants differ from stock rights?
- Shareholders can vote on which of the following corporate actions?
- Which of the following gives existing shareholders the opportunity to maintain their proportionate ownership in a…
- The book value of a company is best described as:
- What do American Depositary Receipts (ADRs) allow U.S. investors to do?
- Market capitalization is determined by:
- Which statement best describes a cash dividend?
