College Savings Quizzes-A stock split:

Answer to Quiz

A stock split:

Answer: (c)
A "stock split" is a split of existing shares into a different number of shares. For example, if a company has 2,000,000 shares outstanding, and undertakes a 2 for 1 stock split, it will have 4,000,000 shares outstanding after the stock split. A reverse stock split results in less shares being outstanding. For example, if a company has 6,000,000 shares outstanding and does a 1 for 2 reverse stock split, the company will end up with 3,000,000 shares outstanding after the stock split.

Next Quiz:

What year was the New York Stock Exchange created?

(a) 1791
(b) 1862
(c) 1789
(d) 1781

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