Intel's board of directors declares a three-for-one stock split. Prior to the split, the market price of a share of Intel stock was $30. About how much will each share be worth after the split?
A) $30
B) $90
C) $10
D) $120
E) $15

Question

Quizplus · Accepted Answer

In a three-for-one stock split, each share is divided into three shares, so the price of each new share is one-third of the original price. Therefore, $30 divided by 3 equals $10 per share after the split.

Intel's Board of Directors Declares a Three-For-One Stock Split