SIE practice questionmediumStock Splits
In a reverse 1-for-4 stock split, an investor holding 400 shares will now hold how many shares?
- A400
- B100✓ Correct answer
- C1,600
- D4
Explanation
Why B — 100
A 1-for-4 reverse split means every 4 shares become 1, so 400 shares are consolidated into 100. The other answers misapply the split ratio.
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