The board of directors of Netflix declared a two- for-one stock split. If Sally Smith owned 400 shares before the split, how many shares does she own after the split?
A) 200
B) 400
C) 600
D) 800
E) 1,000

Question

Quizplus · Accepted Answer

In a two-for-one stock split, each share owned is split into two shares, effectively doubling the number of shares owned. Therefore, if Sally Smith owned 400 shares before the split, she would own 800 shares after the split.

The Board of Directors of Netflix Declared a Two- For-One