GB Inc. is planning on announcing a 4-for-1 stock split. The stock is currently trading at $25 per share. Based on this information, what will be the new stock price?

Name: GB Inc. is planning on announcing a 4-for-1 stock split. The stock is currently trading at $25 per share. Based on this information, what will be the new stock price?
Brand: Quizplus
Rating: 4.7 (54 reviews)

Question

Quizplus · Accepted Answer

In a 4-for-1 stock split, each share is divided into 4, so the price per share is also divided by 4. Therefore, the new price per share would be $25 / 4 = $6.25.

GB Inc Is Planning on Announcing a 4-For-1 Stock Split