If a company has 1 million shares outstanding before a 1.5:1 stock split, the number of shares outstanding after the split is closest to:

Question

Quizplus · Accepted Answer

In a 1.5:1 stock split, for every 1 share owned, the shareholder will now own 1.5 shares. Therefore, if the company had 1 million shares outstanding before the split, after the split, it will have 1 million * 1.5 = 1.5 million shares outstanding.

If a Company Has 1 Million Shares Outstanding Before a 1.5:1