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SIE: Equity Securities
SIE practice questioneasyStock Splits

What effect does a 2-for-1 stock split have on an investor’s position?

  1. ADoubles both the number of shares and the price per share
  2. BDoubles the number of shares and halves the price per share✓ Correct answer
  3. CHalves both the number of shares and the price per share
  4. DDoubles the price per share only
Explanation

Why BDoubles the number of shares and halves the price per share

A 2-for-1 split means shareholders have twice as many shares at half the price; the total value is unchanged. The other choices incorrectly describe the split’s impact.

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