When a stock splits two-for-one,you should expect the price per share to:
A)decrease to half its pre-split price.
B)decrease in value by 75 percent or more.
C)remain unchanged.
D)increase to more than twice its pre-split price.
E)increase to twice its pre-split price.

Question

Quizplus · Accepted Answer

In a two-for-one stock split, each share is divided into two, effectively halving the price per share to maintain the overall value of an investor's holdings. This means the price per share decreases to half its pre-split price, making shares more accessible to a broader range of investors without changing the company's market capitalization.

When a Stock Splits Two-For-One,you Should Expect the Price Per